Correlation Between Bragg Gaming and Electra Battery
Can any of the company-specific risk be diversified away by investing in both Bragg Gaming and Electra Battery 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 Bragg Gaming and Electra Battery into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bragg Gaming Group and Electra Battery Materials, you can compare the effects of market volatilities on Bragg Gaming and Electra Battery 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 Bragg Gaming with a short position of Electra Battery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bragg Gaming and Electra Battery.
Diversification Opportunities for Bragg Gaming and Electra Battery
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bragg and Electra is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Bragg Gaming Group and Electra Battery Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Electra Battery Materials and Bragg 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 Bragg Gaming Group are associated (or correlated) with Electra Battery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Electra Battery Materials has no effect on the direction of Bragg Gaming i.e., Bragg Gaming and Electra Battery go up and down completely randomly.
Pair Corralation between Bragg Gaming and Electra Battery
Assuming the 90 days trading horizon Bragg Gaming Group is expected to generate 2.52 times more return on investment than Electra Battery. However, Bragg Gaming is 2.52 times more volatile than Electra Battery Materials. It trades about -0.05 of its potential returns per unit of risk. Electra Battery Materials is currently generating about -0.34 per unit of risk. If you would invest 610.00 in Bragg Gaming Group on September 12, 2024 and sell it today you would lose (91.00) from holding Bragg Gaming Group or give up 14.92% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Bragg Gaming Group vs. Electra Battery Materials
Performance |
Timeline |
Bragg Gaming Group |
Electra Battery Materials |
Bragg Gaming and Electra Battery Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bragg Gaming and Electra Battery
The main advantage of trading using opposite Bragg Gaming and Electra Battery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bragg Gaming position performs unexpectedly, Electra Battery 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 Electra Battery will offset losses from the drop in Electra Battery's long position.Bragg Gaming vs. Berkshire Hathaway CDR | Bragg Gaming vs. Microsoft Corp CDR | Bragg Gaming vs. Apple Inc CDR | Bragg Gaming vs. Alphabet Inc CDR |
Electra Battery vs. Ressources Minieres Radisson | Electra Battery vs. Galantas Gold Corp | Electra Battery vs. Red Pine Exploration | Electra Battery vs. Kore Mining |
Check out your portfolio center.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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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