Correlation Between Bragg Gaming and Summa Silver

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

Diversification Opportunities for Bragg Gaming and Summa Silver

0.87

Correlation Coefficient

Bragg Gaming  Summa Silver

Very poor diversification

The 3 months correlation between Bragg and Summa is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Bragg Gaming Group and Summa Silver Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Summa Silver Corp 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 Summa Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Summa Silver Corp has no effect on the direction of Bragg Gaming i.e., Bragg Gaming and Summa Silver go up and down completely randomly.

Pair Corralation between Bragg Gaming and Summa Silver

Given the investment horizon of 90 days Bragg Gaming Group is expected to generate 1.15 times more return on investment than Summa Silver. However, Bragg Gaming is 1.15 times more volatile than Summa Silver Corp. It trades about -0.01 of its potential returns per unit of risk. Summa Silver Corp is currently generating about -0.02 per unit of risk. If you would invest  484.00  in Bragg Gaming Group on October 26, 2024 and sell it today you would lose (57.00) from holding Bragg Gaming Group or give up 11.78% of portfolio value over 90 days.

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

Bragg Gaming Group  vs.  Summa Silver Corp

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.

Summa Silver Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Summa Silver Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Summa Silver is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Bragg Gaming and Summa Silver

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

The idea behind Bragg Gaming Group and Summa Silver Corp 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.