Correlation Between ANGLER GAMING and Texas Roadhouse

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

Diversification Opportunities for ANGLER GAMING and Texas Roadhouse

-0.34

Correlation Coefficient

ANGLER GAMING  Texas Roadhouse

Very good diversification

The 3 months correlation between ANGLER and Texas is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding ANGLER GAMING PLC and Texas Roadhouse in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Texas Roadhouse 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 Texas Roadhouse. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Texas Roadhouse has no effect on the direction of ANGLER GAMING i.e., ANGLER GAMING and Texas Roadhouse go up and down completely randomly.

Pair Corralation between ANGLER GAMING and Texas Roadhouse

Assuming the 90 days horizon ANGLER GAMING PLC is expected to generate 6.84 times more return on investment than Texas Roadhouse. However, ANGLER GAMING is 6.84 times more volatile than Texas Roadhouse. It trades about 0.25 of its potential returns per unit of risk. Texas Roadhouse is currently generating about 0.02 per unit of risk. If you would invest  27.00  in ANGLER GAMING PLC on October 21, 2024 and sell it today you would earn a total of  13.00  from holding ANGLER GAMING PLC or generate 48.15% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	94.12%
Values	Daily Returns

ANGLER GAMING PLC  vs.  Texas Roadhouse

ANGLER GAMING PLC

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in ANGLER GAMING PLC are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, ANGLER GAMING reported solid returns over the last few months and may actually be approaching a breakup point.

Texas Roadhouse

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Texas Roadhouse are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Texas Roadhouse is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with ANGLER GAMING and Texas Roadhouse

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

The idea behind ANGLER GAMING PLC and Texas Roadhouse 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.

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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..