Correlation Between Bragg Gaming and Jackson Financial

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

Diversification Opportunities for Bragg Gaming and Jackson Financial

0.13

Correlation Coefficient

Bragg Gaming  Jackson Financial

Average diversification

The 3 months correlation between Bragg and Jackson is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Bragg Gaming Group and Jackson Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jackson Financial 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 Jackson Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jackson Financial has no effect on the direction of Bragg Gaming i.e., Bragg Gaming and Jackson Financial go up and down completely randomly.

Pair Corralation between Bragg Gaming and Jackson Financial

Given the investment horizon of 90 days Bragg Gaming Group is expected to generate 4.35 times more return on investment than Jackson Financial. However, Bragg Gaming is 4.35 times more volatile than Jackson Financial. It trades about 0.21 of its potential returns per unit of risk. Jackson Financial is currently generating about 0.03 per unit of risk. If you would invest  355.00  in Bragg Gaming Group on October 25, 2024 and sell it today you would earn a total of  69.00  from holding Bragg Gaming Group or generate 19.44% return on investment over 90 days.

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

Bragg Gaming Group  vs.  Jackson Financial

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. Despite nearly stable basic indicators, Bragg Gaming is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Jackson Financial

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Jackson Financial has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Jackson Financial is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Bragg Gaming and Jackson Financial

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

The idea behind Bragg Gaming Group and Jackson Financial 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 Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .