Correlation Between MGIC INVESTMENT and BRAGG GAMING
Can any of the company-specific risk be diversified away by investing in both MGIC INVESTMENT 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 MGIC INVESTMENT and BRAGG GAMING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MGIC INVESTMENT and BRAGG GAMING GRP, you can compare the effects of market volatilities on MGIC INVESTMENT 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 MGIC INVESTMENT with a short position of BRAGG GAMING. Check out your portfolio center. Please also check ongoing floating volatility patterns of MGIC INVESTMENT and BRAGG GAMING.
Diversification Opportunities for MGIC INVESTMENT and BRAGG GAMING
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between MGIC and BRAGG is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding MGIC INVESTMENT and BRAGG GAMING GRP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BRAGG GAMING GRP and MGIC INVESTMENT 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 MGIC INVESTMENT 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 GRP has no effect on the direction of MGIC INVESTMENT i.e., MGIC INVESTMENT and BRAGG GAMING go up and down completely randomly.
Pair Corralation between MGIC INVESTMENT and BRAGG GAMING
Assuming the 90 days trading horizon MGIC INVESTMENT is expected to under-perform the BRAGG GAMING. But the stock apears to be less risky and, when comparing its historical volatility, MGIC INVESTMENT is 3.42 times less risky than BRAGG GAMING. The stock trades about -0.34 of its potential returns per unit of risk. The BRAGG GAMING GRP is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 312.00 in BRAGG GAMING GRP on September 29, 2024 and sell it today you would earn a total of 22.00 from holding BRAGG GAMING GRP or generate 7.05% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
MGIC INVESTMENT vs. BRAGG GAMING GRP
Performance |
Timeline |
MGIC INVESTMENT |
BRAGG GAMING GRP |
MGIC INVESTMENT and BRAGG GAMING Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with MGIC INVESTMENT and BRAGG GAMING
The main advantage of trading using opposite MGIC INVESTMENT and BRAGG GAMING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MGIC INVESTMENT 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.MGIC INVESTMENT vs. GRIFFIN MINING LTD | MGIC INVESTMENT vs. MINCO SILVER | MGIC INVESTMENT vs. MagnaChip Semiconductor Corp | MGIC INVESTMENT vs. Chalice Mining Limited |
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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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