Correlation Between EcoSynthetix and Bragg Gaming

Can any of the company-specific risk be diversified away by investing in both EcoSynthetix 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 EcoSynthetix and Bragg Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between EcoSynthetix and Bragg Gaming Group, you can compare the effects of market volatilities on EcoSynthetix 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 EcoSynthetix with a short position of Bragg Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of EcoSynthetix and Bragg Gaming.

Diversification Opportunities for EcoSynthetix and Bragg Gaming

0.61

Correlation Coefficient

EcoSynthetix  Bragg Gaming

Poor diversification

The 3 months correlation between EcoSynthetix and Bragg is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding EcoSynthetix 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 EcoSynthetix 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 EcoSynthetix 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 EcoSynthetix i.e., EcoSynthetix and Bragg Gaming go up and down completely randomly.

Pair Corralation between EcoSynthetix and Bragg Gaming

Assuming the 90 days trading horizon EcoSynthetix is expected to generate 1.45 times less return on investment than Bragg Gaming. But when comparing it to its historical volatility, EcoSynthetix is 1.33 times less risky than Bragg Gaming. It trades about 0.01 of its potential returns per unit of risk. Bragg Gaming Group is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  540.00  in Bragg Gaming Group on October 4, 2024 and sell it today you would lose (23.00) from holding Bragg Gaming Group or give up 4.26% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

EcoSynthetix  vs.  Bragg Gaming Group

EcoSynthetix

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days EcoSynthetix has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

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. In spite of unsteady performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in February 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with EcoSynthetix and Bragg Gaming

The main advantage of trading using opposite EcoSynthetix and Bragg Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EcoSynthetix 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.

The idea behind EcoSynthetix and Bragg Gaming Group 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.