Correlation Between BRAGG GAMING and Eidesvik Offshore

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

Diversification Opportunities for BRAGG GAMING and Eidesvik Offshore

0.6

Correlation Coefficient

BRAGG GAMING  Eidesvik Offshore

Poor diversification

The 3 months correlation between BRAGG and Eidesvik is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding BRAGG GAMING GRP and Eidesvik Offshore ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eidesvik Offshore ASA 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 Eidesvik Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eidesvik Offshore ASA has no effect on the direction of BRAGG GAMING i.e., BRAGG GAMING and Eidesvik Offshore go up and down completely randomly.

Pair Corralation between BRAGG GAMING and Eidesvik Offshore

Assuming the 90 days horizon BRAGG GAMING GRP is expected to under-perform the Eidesvik Offshore. In addition to that, BRAGG GAMING is 3.05 times more volatile than Eidesvik Offshore ASA. It trades about -0.03 of its total potential returns per unit of risk. Eidesvik Offshore ASA is currently generating about 0.05 per unit of volatility. If you would invest  109.00  in Eidesvik Offshore ASA on October 6, 2024 and sell it today you would earn a total of  3.00  from holding Eidesvik Offshore ASA or generate 2.75% return on investment over 90 days.

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

BRAGG GAMING GRP  vs.  Eidesvik Offshore ASA

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

Eidesvik Offshore ASA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Eidesvik Offshore ASA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with BRAGG GAMING and Eidesvik Offshore

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

The idea behind BRAGG GAMING GRP and Eidesvik Offshore ASA 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.