Correlation Between EAST SIDE and ANGLER GAMING

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

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

Diversification Opportunities for EAST SIDE and ANGLER GAMING

0.78

Correlation Coefficient

EAST SIDE  ANGLER GAMING

Poor diversification

The 3 months correlation between EAST and ANGLER is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding EAST SIDE GAMES 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 EAST SIDE 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 EAST SIDE GAMES 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 EAST SIDE i.e., EAST SIDE and ANGLER GAMING go up and down completely randomly.

Pair Corralation between EAST SIDE and ANGLER GAMING

Assuming the 90 days horizon EAST SIDE GAMES is expected to under-perform the ANGLER GAMING. In addition to that, EAST SIDE is 1.22 times more volatile than ANGLER GAMING PLC. It trades about -0.04 of its total potential returns per unit of risk. ANGLER GAMING PLC is currently generating about -0.05 per unit of volatility. If you would invest  32.00  in ANGLER GAMING PLC on September 17, 2024 and sell it today you would lose (5.00) from holding ANGLER GAMING PLC or give up 15.62% of portfolio value over 90 days.

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

EAST SIDE GAMES  vs.  ANGLER GAMING PLC

EAST SIDE GAMES

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days EAST SIDE GAMES has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain 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.

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 EAST SIDE and ANGLER GAMING

The main advantage of trading using opposite EAST SIDE and ANGLER GAMING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EAST SIDE 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 EAST SIDE GAMES 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.