Correlation Between Carnival Plc and ANGLER GAMING

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

By analyzing existing cross correlation between Carnival plc and ANGLER GAMING PLC, you can compare the effects of market volatilities on Carnival Plc and ANGLER GAMING 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 Carnival Plc with a short position of ANGLER GAMING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carnival Plc and ANGLER GAMING.

Diversification Opportunities for Carnival Plc and ANGLER GAMING

0.18

Correlation Coefficient

Carnival Plc  ANGLER GAMING

Average diversification

The 3 months correlation between Carnival and ANGLER is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Carnival plc and ANGLER GAMING PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANGLER GAMING PLC and Carnival Plc 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 Carnival plc are associated (or correlated) with ANGLER GAMING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANGLER GAMING PLC has no effect on the direction of Carnival Plc i.e., Carnival Plc and ANGLER GAMING go up and down completely randomly.

Pair Corralation between Carnival Plc and ANGLER GAMING

Assuming the 90 days trading horizon Carnival plc is expected to under-perform the ANGLER GAMING. But the stock apears to be less risky and, when comparing its historical volatility, Carnival plc is 2.16 times less risky than ANGLER GAMING. The stock trades about -0.12 of its potential returns per unit of risk. The ANGLER GAMING PLC is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  27.00  in ANGLER GAMING PLC on December 22, 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 Together
Strength	Insignificant
Accuracy	98.33%
Values	Daily Returns

Carnival plc  vs.  ANGLER GAMING PLC

Carnival plc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Carnival plc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's fundamental indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

ANGLER GAMING PLC

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in ANGLER GAMING PLC are ranked lower than 10 (%) 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.

Pair Trading with Carnival Plc and ANGLER GAMING

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

The idea behind Carnival plc and ANGLER GAMING PLC 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.