Correlation Between Bragg Gaming and 62886EAY4

Can any of the company-specific risk be diversified away by investing in both Bragg Gaming and 62886EAY4 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 62886EAY4 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 NCR P NEW, you can compare the effects of market volatilities on Bragg Gaming and 62886EAY4 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 62886EAY4. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bragg Gaming and 62886EAY4.

Diversification Opportunities for Bragg Gaming and 62886EAY4

0.49

Correlation Coefficient

Bragg Gaming  62886EAY4

Very weak diversification

The 3 months correlation between Bragg and 62886EAY4 is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Bragg Gaming Group and NCR P NEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NCR P NEW 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 62886EAY4. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NCR P NEW has no effect on the direction of Bragg Gaming i.e., Bragg Gaming and 62886EAY4 go up and down completely randomly.

Pair Corralation between Bragg Gaming and 62886EAY4

Given the investment horizon of 90 days Bragg Gaming Group is expected to under-perform the 62886EAY4. In addition to that, Bragg Gaming is 9.67 times more volatile than NCR P NEW. It trades about -0.05 of its total potential returns per unit of risk. NCR P NEW is currently generating about 0.14 per unit of volatility. If you would invest  9,686  in NCR P NEW on October 9, 2024 and sell it today you would earn a total of  292.00  from holding NCR P NEW or generate 3.01% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	90.0%
Values	Daily Returns

Bragg Gaming Group  vs.  NCR P NEW

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.

NCR P NEW

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in NCR P NEW are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, 62886EAY4 is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Bragg Gaming and 62886EAY4

The main advantage of trading using opposite Bragg Gaming and 62886EAY4 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bragg Gaming position performs unexpectedly, 62886EAY4 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 62886EAY4 will offset losses from the drop in 62886EAY4's long position.

The idea behind Bragg Gaming Group and NCR P NEW 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.