Correlation Between ANGLER GAMING and INSURANCE AUST

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

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

Diversification Opportunities for ANGLER GAMING and INSURANCE AUST

0.17

Correlation Coefficient

ANGLER GAMING  INSURANCE AUST

Average diversification

The 3 months correlation between ANGLER and INSURANCE is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding ANGLER GAMING PLC and INSURANCE AUST GRP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INSURANCE AUST GRP and ANGLER 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 ANGLER GAMING PLC are associated (or correlated) with INSURANCE AUST. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INSURANCE AUST GRP has no effect on the direction of ANGLER GAMING i.e., ANGLER GAMING and INSURANCE AUST go up and down completely randomly.

Pair Corralation between ANGLER GAMING and INSURANCE AUST

Assuming the 90 days horizon ANGLER GAMING PLC is expected to generate 2.47 times more return on investment than INSURANCE AUST. However, ANGLER GAMING is 2.47 times more volatile than INSURANCE AUST GRP. It trades about 0.04 of its potential returns per unit of risk. INSURANCE AUST GRP is currently generating about 0.05 per unit of risk. If you would invest  30.00  in ANGLER GAMING PLC on April 25, 2025 and sell it today you would earn a total of  2.00  from holding ANGLER GAMING PLC or generate 6.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

ANGLER GAMING PLC  vs.  INSURANCE AUST GRP

ANGLER GAMING PLC

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in ANGLER GAMING PLC are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, ANGLER GAMING may actually be approaching a critical reversion point that can send shares even higher in August 2025.

INSURANCE AUST GRP

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in INSURANCE AUST GRP are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound primary indicators, INSURANCE AUST is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with ANGLER GAMING and INSURANCE AUST

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

The idea behind ANGLER GAMING PLC and INSURANCE AUST GRP 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.