Correlation Between ANGLER GAMING and AIB Group
Can any of the company-specific risk be diversified away by investing in both ANGLER GAMING and AIB Group at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining ANGLER GAMING and AIB Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ANGLER GAMING PLC and AIB Group plc, you can compare the effects of market volatilities on ANGLER GAMING and AIB Group and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in ANGLER GAMING with a short position of AIB Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANGLER GAMING and AIB Group.
Diversification Opportunities for ANGLER GAMING and AIB Group
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ANGLER and AIB is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding ANGLER GAMING PLC and AIB Group plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AIB Group plc and ANGLER GAMING is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on ANGLER GAMING PLC are associated (or correlated) with AIB Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AIB Group plc has no effect on the direction of ANGLER GAMING i.e., ANGLER GAMING and AIB Group go up and down completely randomly.
Pair Corralation between ANGLER GAMING and AIB Group
Assuming the 90 days horizon ANGLER GAMING PLC is expected to under-perform the AIB Group. In addition to that, ANGLER GAMING is 1.77 times more volatile than AIB Group plc. It trades about -0.04 of its total potential returns per unit of risk. AIB Group plc is currently generating about 0.02 per unit of volatility. If you would invest 494.00 in AIB Group plc on September 24, 2024 and sell it today you would earn a total of 13.00 from holding AIB Group plc or generate 2.63% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 99.22% |
Values | Daily Returns |
ANGLER GAMING PLC vs. AIB Group plc
Performance |
Timeline |
ANGLER GAMING PLC |
AIB Group plc |
ANGLER GAMING and AIB Group Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ANGLER GAMING and AIB Group
The main advantage of trading using opposite ANGLER GAMING and AIB Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANGLER GAMING position performs unexpectedly, AIB Group can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in AIB Group will offset losses from the drop in AIB Group's long position.ANGLER GAMING vs. Flutter Entertainment PLC | ANGLER GAMING vs. Evolution AB | ANGLER GAMING vs. Churchill Downs Incorporated | ANGLER GAMING vs. Churchill Downs Incorporated |
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Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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