Correlation Between Park City and BRAGG GAMING

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

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

Diversification Opportunities for Park City and BRAGG GAMING

-0.73

Correlation Coefficient

Park City  BRAGG GAMING

Pay attention - limited upside

The 3 months correlation between Park and BRAGG is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Park City Group 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 Park City 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 Park City Group 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 Park City i.e., Park City and BRAGG GAMING go up and down completely randomly.

Pair Corralation between Park City and BRAGG GAMING

Assuming the 90 days trading horizon Park City Group is expected to under-perform the BRAGG GAMING. But the stock apears to be less risky and, when comparing its historical volatility, Park City Group is 2.42 times less risky than BRAGG GAMING. The stock trades about -0.09 of its potential returns per unit of risk. The BRAGG GAMING GRP is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest  334.00  in BRAGG GAMING GRP on October 25, 2024 and sell it today you would earn a total of  66.00  from holding BRAGG GAMING GRP or generate 19.76% return on investment over 90 days.

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

Park City Group  vs.  BRAGG GAMING GRP

Park City Group

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Park City Group are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Park City reported solid returns over the last few months and may actually be approaching a breakup point.

BRAGG GAMING GRP

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days BRAGG GAMING GRP has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, BRAGG GAMING is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Park City and BRAGG GAMING

The main advantage of trading using opposite Park City and BRAGG GAMING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Park City 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 Park City Group and BRAGG GAMING GRP 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.