Correlation Between BRAGG GAMING and Advanced Info

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

Diversification Opportunities for BRAGG GAMING and Advanced Info

0.47

Correlation Coefficient

BRAGG GAMING  Advanced Info

Very weak diversification

The 3 months correlation between BRAGG and Advanced is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding BRAGG GAMING GRP and Advanced Info Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advanced Info Service 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 Advanced Info. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advanced Info Service has no effect on the direction of BRAGG GAMING i.e., BRAGG GAMING and Advanced Info go up and down completely randomly.

Pair Corralation between BRAGG GAMING and Advanced Info

Assuming the 90 days horizon BRAGG GAMING GRP is expected to generate 2.87 times more return on investment than Advanced Info. However, BRAGG GAMING is 2.87 times more volatile than Advanced Info Service. It trades about 0.11 of its potential returns per unit of risk. Advanced Info Service is currently generating about -0.06 per unit of risk. If you would invest  330.00  in BRAGG GAMING GRP on December 22, 2024 and sell it today you would earn a total of  88.00  from holding BRAGG GAMING GRP or generate 26.67% return on investment over 90 days.

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

BRAGG GAMING GRP  vs.  Advanced Info Service

BRAGG GAMING GRP

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in BRAGG GAMING GRP are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, BRAGG GAMING reported solid returns over the last few months and may actually be approaching a breakup point.

Advanced Info Service

Risk-Adjusted Performance

Very Weak

Over the last 90 days Advanced Info Service has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Advanced Info is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with BRAGG GAMING and Advanced Info

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

The idea behind BRAGG GAMING GRP and Advanced Info Service 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.