Correlation Between TFS FINANCIAL and ANGLER GAMING

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

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

Diversification Opportunities for TFS FINANCIAL and ANGLER GAMING

-0.59

Correlation Coefficient

TFS FINANCIAL  ANGLER GAMING

Excellent diversification

The 3 months correlation between TFS and ANGLER is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding TFS FINANCIAL 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 TFS FINANCIAL 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 TFS FINANCIAL 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 TFS FINANCIAL i.e., TFS FINANCIAL and ANGLER GAMING go up and down completely randomly.

Pair Corralation between TFS FINANCIAL and ANGLER GAMING

Assuming the 90 days trading horizon TFS FINANCIAL is expected to under-perform the ANGLER GAMING. In addition to that, TFS FINANCIAL is 1.34 times more volatile than ANGLER GAMING PLC. It trades about -0.27 of its total potential returns per unit of risk. ANGLER GAMING PLC is currently generating about -0.25 per unit of volatility. If you would invest  28.00  in ANGLER GAMING PLC on October 7, 2024 and sell it today you would lose (1.00) from holding ANGLER GAMING PLC or give up 3.57% of portfolio value over 90 days.

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

TFS FINANCIAL  vs.  ANGLER GAMING PLC

TFS FINANCIAL

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in TFS FINANCIAL are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain basic indicators, TFS FINANCIAL may actually be approaching a critical reversion point that can send shares even higher in February 2025.

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 fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with TFS FINANCIAL and ANGLER GAMING

The main advantage of trading using opposite TFS FINANCIAL and ANGLER GAMING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TFS FINANCIAL 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 TFS FINANCIAL 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.