Correlation Between Allied Gaming and ANZNZ

Can any of the company-specific risk be diversified away by investing in both Allied Gaming and ANZNZ 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 Allied Gaming and ANZNZ into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Allied Gaming Entertainment and ANZNZ 2166 18 FEB 25, you can compare the effects of market volatilities on Allied Gaming and ANZNZ 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 Allied Gaming with a short position of ANZNZ. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allied Gaming and ANZNZ.

Diversification Opportunities for Allied Gaming and ANZNZ

-0.7

Correlation Coefficient

Allied Gaming  ANZNZ

Excellent diversification

The 3 months correlation between Allied and ANZNZ is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Allied Gaming Entertainment and ANZNZ 2166 18 FEB 25 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANZNZ 2166 18 and Allied 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 Allied Gaming Entertainment are associated (or correlated) with ANZNZ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANZNZ 2166 18 has no effect on the direction of Allied Gaming i.e., Allied Gaming and ANZNZ go up and down completely randomly.

Pair Corralation between Allied Gaming and ANZNZ

Given the investment horizon of 90 days Allied Gaming Entertainment is expected to under-perform the ANZNZ. In addition to that, Allied Gaming is 3.25 times more volatile than ANZNZ 2166 18 FEB 25. It trades about -0.1 of its total potential returns per unit of risk. ANZNZ 2166 18 FEB 25 is currently generating about -0.2 per unit of volatility. If you would invest  9,901  in ANZNZ 2166 18 FEB 25 on October 11, 2024 and sell it today you would lose (483.00) from holding ANZNZ 2166 18 FEB 25 or give up 4.88% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	29.03%
Values	Daily Returns

Allied Gaming Entertainment  vs.  ANZNZ 2166 18 FEB 25

Allied Gaming Entert

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Allied Gaming Entertainment has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in February 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

ANZNZ 2166 18

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ANZNZ 2166 18 FEB 25 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Bond's basic indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for ANZNZ 2166 18 FEB 25 investors.

Pair Trading with Allied Gaming and ANZNZ

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

The idea behind Allied Gaming Entertainment and ANZNZ 2166 18 FEB 25 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.