Correlation Between Bragg Gaming and Teradyne

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

Diversification Opportunities for Bragg Gaming and Teradyne

-0.4

Correlation Coefficient

Bragg Gaming  Teradyne

Very good diversification

The 3 months correlation between Bragg and Teradyne is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Bragg Gaming Group and Teradyne in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teradyne 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 Teradyne. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Teradyne has no effect on the direction of Bragg Gaming i.e., Bragg Gaming and Teradyne go up and down completely randomly.

Pair Corralation between Bragg Gaming and Teradyne

Given the investment horizon of 90 days Bragg Gaming Group is expected to generate 1.38 times more return on investment than Teradyne. However, Bragg Gaming is 1.38 times more volatile than Teradyne. It trades about 0.12 of its potential returns per unit of risk. Teradyne is currently generating about -0.16 per unit of risk. If you would invest  344.00  in Bragg Gaming Group on December 19, 2024 and sell it today you would earn a total of  103.00  from holding Bragg Gaming Group or generate 29.94% 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.  Teradyne

Bragg Gaming Group

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Bragg Gaming Group are ranked lower than 9 (%) 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.

Teradyne

Risk-Adjusted Performance

Very Weak

Over the last 90 days Teradyne has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's technical and fundamental indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Bragg Gaming and Teradyne

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

The idea behind Bragg Gaming Group and Teradyne 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.