Correlation Between Bragg Gaming and Teras Resources

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

Diversification Opportunities for Bragg Gaming and Teras Resources

0.0

Correlation Coefficient

Bragg Gaming  Teras Resources

Pay attention - limited upside

The 3 months correlation between Bragg and Teras is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bragg Gaming Group and Teras Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teras Resources 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 Teras Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Teras Resources has no effect on the direction of Bragg Gaming i.e., Bragg Gaming and Teras Resources go up and down completely randomly.

Pair Corralation between Bragg Gaming and Teras Resources

If you would invest  1.00  in Teras Resources on September 13, 2024 and sell it today you would earn a total of  0.00  from holding Teras Resources or generate 0.0% return on investment over 90 days.

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

Bragg Gaming Group  vs.  Teras Resources

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.

Teras Resources

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Teras Resources has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Teras Resources is not utilizing all of its potentials. The recent stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Bragg Gaming and Teras Resources

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

The idea behind Bragg Gaming Group and Teras Resources 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.