Correlation Between Bragg Gaming and ZEEKR Intelligent

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

Diversification Opportunities for Bragg Gaming and ZEEKR Intelligent

-0.59

Correlation Coefficient

Bragg Gaming  ZEEKR Intelligent

Excellent diversification

The 3 months correlation between Bragg and ZEEKR is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Bragg Gaming Group and ZEEKR Intelligent Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZEEKR Intelligent 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 ZEEKR Intelligent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZEEKR Intelligent has no effect on the direction of Bragg Gaming i.e., Bragg Gaming and ZEEKR Intelligent go up and down completely randomly.

Pair Corralation between Bragg Gaming and ZEEKR Intelligent

Given the investment horizon of 90 days Bragg Gaming Group is expected to generate 0.9 times more return on investment than ZEEKR Intelligent. However, Bragg Gaming Group is 1.11 times less risky than ZEEKR Intelligent. It trades about 0.1 of its potential returns per unit of risk. ZEEKR Intelligent Technology is currently generating about 0.06 per unit of risk. If you would invest  353.00  in Bragg Gaming Group on December 18, 2024 and sell it today you would earn a total of  79.00  from holding Bragg Gaming Group or generate 22.38% 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.  ZEEKR Intelligent Technology

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 7 (%) 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.

ZEEKR Intelligent

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in ZEEKR Intelligent Technology are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite quite weak forward-looking signals, ZEEKR Intelligent disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Bragg Gaming and ZEEKR Intelligent

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

The idea behind Bragg Gaming Group and ZEEKR Intelligent Technology 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.