Correlation Between CHAMPION IRON and ANGLER GAMING

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

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

Diversification Opportunities for CHAMPION IRON and ANGLER GAMING

0.06

Correlation Coefficient

CHAMPION IRON  ANGLER GAMING

Significant diversification

The 3 months correlation between CHAMPION and ANGLER is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding CHAMPION IRON 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 CHAMPION IRON 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 CHAMPION IRON 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 CHAMPION IRON i.e., CHAMPION IRON and ANGLER GAMING go up and down completely randomly.

Pair Corralation between CHAMPION IRON and ANGLER GAMING

Assuming the 90 days trading horizon CHAMPION IRON is expected to generate 0.69 times more return on investment than ANGLER GAMING. However, CHAMPION IRON is 1.44 times less risky than ANGLER GAMING. It trades about 0.1 of its potential returns per unit of risk. ANGLER GAMING PLC is currently generating about 0.04 per unit of risk. If you would invest  236.00  in CHAMPION IRON on April 24, 2025 and sell it today you would earn a total of  36.00  from holding CHAMPION IRON or generate 15.25% return on investment over 90 days.

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

CHAMPION IRON  vs.  ANGLER GAMING PLC

CHAMPION IRON

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in CHAMPION IRON are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, CHAMPION IRON reported solid returns over the last few months and may actually be approaching a breakup point.

ANGLER GAMING PLC

Risk-Adjusted Performance

Weak

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.

Pair Trading with CHAMPION IRON and ANGLER GAMING

The main advantage of trading using opposite CHAMPION IRON and ANGLER GAMING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CHAMPION IRON 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 CHAMPION IRON 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.