Correlation Between BRAGG GAMING and Titan Machinery
Can any of the company-specific risk be diversified away by investing in both BRAGG GAMING and Titan Machinery 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 BRAGG GAMING and Titan Machinery into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BRAGG GAMING GRP and Titan Machinery, you can compare the effects of market volatilities on BRAGG GAMING and Titan Machinery 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 BRAGG GAMING with a short position of Titan Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of BRAGG GAMING and Titan Machinery.
Diversification Opportunities for BRAGG GAMING and Titan Machinery
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BRAGG and Titan is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding BRAGG GAMING GRP and Titan Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Titan Machinery and BRAGG GAMING 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 BRAGG GAMING GRP are associated (or correlated) with Titan Machinery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Titan Machinery has no effect on the direction of BRAGG GAMING i.e., BRAGG GAMING and Titan Machinery go up and down completely randomly.
Pair Corralation between BRAGG GAMING and Titan Machinery
Assuming the 90 days horizon BRAGG GAMING GRP is expected to generate 1.75 times more return on investment than Titan Machinery. However, BRAGG GAMING is 1.75 times more volatile than Titan Machinery. It trades about 0.08 of its potential returns per unit of risk. Titan Machinery is currently generating about -0.25 per unit of risk. If you would invest 310.00 in BRAGG GAMING GRP on September 25, 2024 and sell it today you would earn a total of 18.00 from holding BRAGG GAMING GRP or generate 5.81% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
BRAGG GAMING GRP vs. Titan Machinery
Performance |
Timeline |
BRAGG GAMING GRP |
Titan Machinery |
BRAGG GAMING and Titan Machinery Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with BRAGG GAMING and Titan Machinery
The main advantage of trading using opposite BRAGG GAMING and Titan Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BRAGG GAMING position performs unexpectedly, Titan Machinery 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 Titan Machinery will offset losses from the drop in Titan Machinery's long position.BRAGG GAMING vs. TITANIUM TRANSPORTGROUP | BRAGG GAMING vs. Yuexiu Transport Infrastructure | BRAGG GAMING vs. JD SPORTS FASH | BRAGG GAMING vs. Platinum Investment Management |
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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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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