Correlation Between Graham Holdings and Bragg Gaming

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

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

Diversification Opportunities for Graham Holdings and Bragg Gaming

-0.75

Correlation Coefficient

Graham Holdings  Bragg Gaming

Pay attention - limited upside

The 3 months correlation between Graham and Bragg is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Graham Holdings Co 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 Graham Holdings 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 Graham Holdings Co 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 Graham Holdings i.e., Graham Holdings and Bragg Gaming go up and down completely randomly.

Pair Corralation between Graham Holdings and Bragg Gaming

Considering the 90-day investment horizon Graham Holdings Co is expected to under-perform the Bragg Gaming. But the stock apears to be less risky and, when comparing its historical volatility, Graham Holdings Co is 1.73 times less risky than Bragg Gaming. The stock trades about -0.24 of its potential returns per unit of risk. The Bragg Gaming Group is currently generating about -0.1 of returns per unit of risk over similar time horizon. If you would invest  371.00  in Bragg Gaming Group on October 12, 2024 and sell it today you would lose (26.00) from holding Bragg Gaming Group or give up 7.01% of portfolio value over 90 days.

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

Graham Holdings Co  vs.  Bragg Gaming Group

Graham Holdings

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Graham Holdings Co are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating technical indicators, Graham Holdings may actually be approaching a critical reversion point that can send shares even higher in February 2025.

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.

Pair Trading with Graham Holdings and Bragg Gaming

The main advantage of trading using opposite Graham Holdings and Bragg Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Graham Holdings 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 Graham Holdings Co 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.