Correlation Between Bragg Gaming and ANZNZ

Can any of the company-specific risk be diversified away by investing in both Bragg Gaming and ANZNZ 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 ANZNZ 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 ANZNZ 2166 18 FEB 25, you can compare the effects of market volatilities on Bragg Gaming and ANZNZ 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 ANZNZ. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bragg Gaming and ANZNZ.

Diversification Opportunities for Bragg Gaming and ANZNZ

-0.63

Correlation Coefficient

Bragg Gaming  ANZNZ

Excellent diversification

The 3 months correlation between Bragg and ANZNZ is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Bragg Gaming Group and ANZNZ 2166 18 FEB 25 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANZNZ 2166 18 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 ANZNZ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANZNZ 2166 18 has no effect on the direction of Bragg Gaming i.e., Bragg Gaming and ANZNZ go up and down completely randomly.

Pair Corralation between Bragg Gaming and ANZNZ

Given the investment horizon of 90 days Bragg Gaming Group is expected to generate 5.64 times more return on investment than ANZNZ. However, Bragg Gaming is 5.64 times more volatile than ANZNZ 2166 18 FEB 25. It trades about 0.0 of its potential returns per unit of risk. ANZNZ 2166 18 FEB 25 is currently generating about 0.0 per unit of risk. If you would invest  431.00  in Bragg Gaming Group on October 11, 2024 and sell it today you would lose (86.00) from holding Bragg Gaming Group or give up 19.95% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	34.88%
Values	Daily Returns

Bragg Gaming Group  vs.  ANZNZ 2166 18 FEB 25

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 fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

ANZNZ 2166 18

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ANZNZ 2166 18 FEB 25 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Bond's basic indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for ANZNZ 2166 18 FEB 25 investors.

Pair Trading with Bragg Gaming and ANZNZ

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

The idea behind Bragg Gaming Group and ANZNZ 2166 18 FEB 25 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.