Correlation Between ECN Capital and Bragg Gaming
Can any of the company-specific risk be diversified away by investing in both ECN Capital and Bragg Gaming 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 ECN Capital and Bragg Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ECN Capital Corp and Bragg Gaming Group, you can compare the effects of market volatilities on ECN Capital and Bragg Gaming 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 ECN Capital with a short position of Bragg Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of ECN Capital and Bragg Gaming.
Diversification Opportunities for ECN Capital and Bragg Gaming
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ECN and Bragg is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding ECN Capital Corp and Bragg Gaming Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bragg Gaming Group and ECN Capital 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 ECN Capital Corp are associated (or correlated) with Bragg Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bragg Gaming Group has no effect on the direction of ECN Capital i.e., ECN Capital and Bragg Gaming go up and down completely randomly.
Pair Corralation between ECN Capital and Bragg Gaming
Assuming the 90 days trading horizon ECN Capital Corp is expected to generate 0.7 times more return on investment than Bragg Gaming. However, ECN Capital Corp is 1.43 times less risky than Bragg Gaming. It trades about 0.22 of its potential returns per unit of risk. Bragg Gaming Group is currently generating about -0.08 per unit of risk. If you would invest 220.00 in ECN Capital Corp on September 23, 2024 and sell it today you would earn a total of 92.00 from holding ECN Capital Corp or generate 41.82% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
ECN Capital Corp vs. Bragg Gaming Group
Performance |
Timeline |
ECN Capital Corp |
Bragg Gaming Group |
ECN Capital and Bragg Gaming Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ECN Capital and Bragg Gaming
The main advantage of trading using opposite ECN Capital and Bragg Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ECN Capital position performs unexpectedly, Bragg Gaming 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 Bragg Gaming will offset losses from the drop in Bragg Gaming's long position.ECN Capital vs. Element Fleet Management | ECN Capital vs. Colliers International Group | ECN Capital vs. Altus Group Limited | ECN Capital vs. FirstService Corp |
Bragg Gaming vs. Enthusiast Gaming Holdings | Bragg Gaming vs. ESE Entertainment | Bragg Gaming vs. Braille Energy Systems | Bragg Gaming vs. iShares Canadian HYBrid |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |