Correlation Between Bragg Gaming and Kura Sushi

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

Diversification Opportunities for Bragg Gaming and Kura Sushi

-0.52

Correlation Coefficient

Bragg Gaming  Kura Sushi

Excellent diversification

The 3 months correlation between Bragg and Kura is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Bragg Gaming Group and Kura Sushi USA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kura Sushi USA 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 Kura Sushi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kura Sushi USA has no effect on the direction of Bragg Gaming i.e., Bragg Gaming and Kura Sushi go up and down completely randomly.

Pair Corralation between Bragg Gaming and Kura Sushi

Given the investment horizon of 90 days Bragg Gaming Group is expected to generate 1.12 times more return on investment than Kura Sushi. However, Bragg Gaming is 1.12 times more volatile than Kura Sushi USA. It trades about 0.1 of its potential returns per unit of risk. Kura Sushi USA is currently generating about -0.21 per unit of risk. If you would invest  353.00  in Bragg Gaming Group on December 18, 2024 and sell it today you would earn a total of  79.00  from holding Bragg Gaming Group or generate 22.38% 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.  Kura Sushi USA

Bragg Gaming Group

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Bragg Gaming Group are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Bragg Gaming reported solid returns over the last few months and may actually be approaching a breakup point.

Kura Sushi USA

Risk-Adjusted Performance

Very Weak

Over the last 90 days Kura Sushi USA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Bragg Gaming and Kura Sushi

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

The idea behind Bragg Gaming Group and Kura Sushi USA 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.