Correlation Between BRAGG GAMING and NEXON

Can any of the company-specific risk be diversified away by investing in both BRAGG GAMING and NEXON 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 NEXON 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 NEXON Co, you can compare the effects of market volatilities on BRAGG GAMING and NEXON 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 NEXON. Check out your portfolio center. Please also check ongoing floating volatility patterns of BRAGG GAMING and NEXON.

Diversification Opportunities for BRAGG GAMING and NEXON

0.92

Correlation Coefficient

BRAGG GAMING  NEXON

Almost no diversification

The 3 months correlation between BRAGG and NEXON is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding BRAGG GAMING GRP and NEXON Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NEXON 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 NEXON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NEXON has no effect on the direction of BRAGG GAMING i.e., BRAGG GAMING and NEXON go up and down completely randomly.

Pair Corralation between BRAGG GAMING and NEXON

Assuming the 90 days horizon BRAGG GAMING GRP is expected to generate 2.51 times more return on investment than NEXON. However, BRAGG GAMING is 2.51 times more volatile than NEXON Co. It trades about 0.23 of its potential returns per unit of risk. NEXON Co is currently generating about 0.31 per unit of risk. If you would invest  282.00  in BRAGG GAMING GRP on September 17, 2024 and sell it today you would earn a total of  60.00  from holding BRAGG GAMING GRP or generate 21.28% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

BRAGG GAMING GRP  vs.  NEXON Co

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 uncertain performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

NEXON

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days NEXON Co has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with BRAGG GAMING and NEXON

The main advantage of trading using opposite BRAGG GAMING and NEXON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BRAGG GAMING position performs unexpectedly, NEXON 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 NEXON will offset losses from the drop in NEXON's long position.

The idea behind BRAGG GAMING GRP and NEXON Co 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.