Correlation Between Bragg Gaming and 04686JAD3

Can any of the company-specific risk be diversified away by investing in both Bragg Gaming and 04686JAD3 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 04686JAD3 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 ATH 395 25 MAY 51, you can compare the effects of market volatilities on Bragg Gaming and 04686JAD3 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 04686JAD3. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bragg Gaming and 04686JAD3.

Diversification Opportunities for Bragg Gaming and 04686JAD3

0.39

Correlation Coefficient

Bragg Gaming  04686JAD3

Weak diversification

The 3 months correlation between Bragg and 04686JAD3 is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Bragg Gaming Group and ATH 395 25 MAY 51 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 04686JAD3 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 04686JAD3. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 04686JAD3 has no effect on the direction of Bragg Gaming i.e., Bragg Gaming and 04686JAD3 go up and down completely randomly.

Pair Corralation between Bragg Gaming and 04686JAD3

Given the investment horizon of 90 days Bragg Gaming Group is expected to under-perform the 04686JAD3. In addition to that, Bragg Gaming is 5.61 times more volatile than ATH 395 25 MAY 51. It trades about -0.08 of its total potential returns per unit of risk. ATH 395 25 MAY 51 is currently generating about -0.12 per unit of volatility. If you would invest  7,570  in ATH 395 25 MAY 51 on October 10, 2024 and sell it today you would lose (433.00) from holding ATH 395 25 MAY 51 or give up 5.72% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	88.52%
Values	Daily Returns

Bragg Gaming Group  vs.  ATH 395 25 MAY 51

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.

04686JAD3

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ATH 395 25 MAY 51 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest inconsistent performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for ATH 395 25 MAY 51 investors.

Pair Trading with Bragg Gaming and 04686JAD3

The main advantage of trading using opposite Bragg Gaming and 04686JAD3 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bragg Gaming position performs unexpectedly, 04686JAD3 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 04686JAD3 will offset losses from the drop in 04686JAD3's long position.

The idea behind Bragg Gaming Group and ATH 395 25 MAY 51 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.