Correlation Between CASTA DIVA and ANGLER GAMING

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

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

Diversification Opportunities for CASTA DIVA and ANGLER GAMING

-0.15

Correlation Coefficient

CASTA DIVA  ANGLER GAMING

Good diversification

The 3 months correlation between CASTA and ANGLER is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding CASTA DIVA GROUP 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 CASTA DIVA 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 CASTA DIVA GROUP 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 CASTA DIVA i.e., CASTA DIVA and ANGLER GAMING go up and down completely randomly.

Pair Corralation between CASTA DIVA and ANGLER GAMING

Assuming the 90 days horizon CASTA DIVA GROUP is expected to generate 0.7 times more return on investment than ANGLER GAMING. However, CASTA DIVA GROUP is 1.42 times less risky than ANGLER GAMING. It trades about 0.12 of its potential returns per unit of risk. ANGLER GAMING PLC is currently generating about -0.05 per unit of risk. If you would invest  97.00  in CASTA DIVA GROUP on September 17, 2024 and sell it today you would earn a total of  20.00  from holding CASTA DIVA GROUP or generate 20.62% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

CASTA DIVA GROUP  vs.  ANGLER GAMING PLC

CASTA DIVA GROUP

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in CASTA DIVA GROUP are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, CASTA DIVA reported solid returns over the last few months and may actually be approaching a breakup point.

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.

Pair Trading with CASTA DIVA and ANGLER GAMING

The main advantage of trading using opposite CASTA DIVA and ANGLER GAMING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CASTA DIVA 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 CASTA DIVA GROUP 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..