Correlation Between ANGLER GAMING and Nintendo

Can any of the company-specific risk be diversified away by investing in both ANGLER GAMING and Nintendo 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 Nintendo 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 Nintendo Co, you can compare the effects of market volatilities on ANGLER GAMING and Nintendo 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 Nintendo. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANGLER GAMING and Nintendo.

Diversification Opportunities for ANGLER GAMING and Nintendo

-0.8

Correlation Coefficient

ANGLER GAMING  Nintendo

Pay attention - limited upside

The 3 months correlation between ANGLER and Nintendo is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding ANGLER GAMING PLC and Nintendo Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nintendo 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 Nintendo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nintendo has no effect on the direction of ANGLER GAMING i.e., ANGLER GAMING and Nintendo go up and down completely randomly.

Pair Corralation between ANGLER GAMING and Nintendo

Assuming the 90 days horizon ANGLER GAMING PLC is expected to under-perform the Nintendo. In addition to that, ANGLER GAMING is 2.5 times more volatile than Nintendo Co. It trades about -0.11 of its total potential returns per unit of risk. Nintendo Co is currently generating about 0.33 per unit of volatility. If you would invest  5,040  in Nintendo Co on September 13, 2024 and sell it today you would earn a total of  682.00  from holding Nintendo Co or generate 13.53% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

ANGLER GAMING PLC  vs.  Nintendo Co

ANGLER GAMING PLC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ANGLER GAMING PLC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Nintendo

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Nintendo Co are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Nintendo reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ANGLER GAMING and Nintendo

The main advantage of trading using opposite ANGLER GAMING and Nintendo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANGLER GAMING position performs unexpectedly, Nintendo 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 Nintendo will offset losses from the drop in Nintendo's long position.

The idea behind ANGLER GAMING PLC and Nintendo Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.