Correlation Between Atea ASA and BRAGG GAMING
Can any of the company-specific risk be diversified away by investing in both Atea ASA 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 Atea ASA and BRAGG GAMING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atea ASA and BRAGG GAMING GRP, you can compare the effects of market volatilities on Atea ASA 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 Atea ASA with a short position of BRAGG GAMING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atea ASA and BRAGG GAMING.
Diversification Opportunities for Atea ASA and BRAGG GAMING
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Atea and BRAGG is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Atea ASA 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 Atea ASA 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 Atea ASA 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 Atea ASA i.e., Atea ASA and BRAGG GAMING go up and down completely randomly.
Pair Corralation between Atea ASA and BRAGG GAMING
Assuming the 90 days trading horizon Atea ASA is expected to under-perform the BRAGG GAMING. But the stock apears to be less risky and, when comparing its historical volatility, Atea ASA is 3.68 times less risky than BRAGG GAMING. The stock trades about -0.01 of its potential returns per unit of risk. The BRAGG GAMING GRP is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 330.00 in BRAGG GAMING GRP on December 21, 2024 and sell it today you would earn a total of 60.00 from holding BRAGG GAMING GRP or generate 18.18% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Atea ASA vs. BRAGG GAMING GRP
Performance |
Timeline |
Atea ASA |
BRAGG GAMING GRP |
Atea ASA and BRAGG GAMING Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Atea ASA and BRAGG GAMING
The main advantage of trading using opposite Atea ASA and BRAGG GAMING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atea ASA 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.Atea ASA vs. Goosehead Insurance | Atea ASA vs. NIGHTINGALE HEALTH EO | Atea ASA vs. REVO INSURANCE SPA | Atea ASA vs. MPH Health Care |
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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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