Correlation Between Bragg Gaming and Alphabet

Can any of the company-specific risk be diversified away by investing in both Bragg Gaming and Alphabet 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 Alphabet 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 Alphabet Inc CDR, you can compare the effects of market volatilities on Bragg Gaming and Alphabet 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 Alphabet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bragg Gaming and Alphabet.

Diversification Opportunities for Bragg Gaming and Alphabet

-0.53

Correlation Coefficient

Bragg Gaming  Alphabet

Excellent diversification

The 3 months correlation between Bragg and Alphabet is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Bragg Gaming Group and Alphabet Inc CDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alphabet CDR 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 Alphabet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alphabet CDR has no effect on the direction of Bragg Gaming i.e., Bragg Gaming and Alphabet go up and down completely randomly.

Pair Corralation between Bragg Gaming and Alphabet

Assuming the 90 days trading horizon Bragg Gaming Group is expected to generate 1.82 times more return on investment than Alphabet. However, Bragg Gaming is 1.82 times more volatile than Alphabet Inc CDR. It trades about 0.1 of its potential returns per unit of risk. Alphabet Inc CDR is currently generating about 0.14 per unit of risk. If you would invest  460.00  in Bragg Gaming Group on September 21, 2024 and sell it today you would earn a total of  35.00  from holding Bragg Gaming Group or generate 7.61% return on investment over 90 days.

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

Bragg Gaming Group  vs.  Alphabet Inc CDR

Bragg Gaming Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Bragg Gaming Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in January 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Alphabet CDR

Risk-Adjusted Performance

11 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Alphabet Inc CDR are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating technical and fundamental indicators, Alphabet exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Bragg Gaming and Alphabet

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

The idea behind Bragg Gaming Group and Alphabet Inc CDR 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.

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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.