Correlation Between Genertec Universal and BRAGG GAMING

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

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

Diversification Opportunities for Genertec Universal and BRAGG GAMING

-0.25

Correlation Coefficient

Genertec Universal  BRAGG GAMING

Very good diversification

The 3 months correlation between Genertec and BRAGG is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Genertec Universal Medical and BRAGG GAMING GRP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BRAGG GAMING GRP and Genertec Universal 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 Genertec Universal Medical are associated (or correlated) with BRAGG GAMING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BRAGG GAMING GRP has no effect on the direction of Genertec Universal i.e., Genertec Universal and BRAGG GAMING go up and down completely randomly.

Pair Corralation between Genertec Universal and BRAGG GAMING

Assuming the 90 days horizon Genertec Universal Medical is expected to generate 0.47 times more return on investment than BRAGG GAMING. However, Genertec Universal Medical is 2.12 times less risky than BRAGG GAMING. It trades about 0.06 of its potential returns per unit of risk. BRAGG GAMING GRP is currently generating about -0.01 per unit of risk. If you would invest  53.00  in Genertec Universal Medical on October 26, 2024 and sell it today you would earn a total of  4.00  from holding Genertec Universal Medical or generate 7.55% return on investment over 90 days.

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

Genertec Universal Medical  vs.  BRAGG GAMING GRP

Genertec Universal

Risk-Adjusted Performance

4 of 100

Insignificant

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

BRAGG GAMING GRP

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days BRAGG GAMING GRP has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, BRAGG GAMING is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Genertec Universal and BRAGG GAMING

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

The idea behind Genertec Universal Medical and BRAGG GAMING 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.