Correlation Between BRAGG GAMING and Equinix

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

Diversification Opportunities for BRAGG GAMING and Equinix

-0.77

Correlation Coefficient

BRAGG GAMING  Equinix

Pay attention - limited upside

The 3 months correlation between BRAGG and Equinix is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding BRAGG GAMING GRP and Equinix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Equinix 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 Equinix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Equinix has no effect on the direction of BRAGG GAMING i.e., BRAGG GAMING and Equinix go up and down completely randomly.

Pair Corralation between BRAGG GAMING and Equinix

Assuming the 90 days horizon BRAGG GAMING GRP is expected to generate 2.25 times more return on investment than Equinix. However, BRAGG GAMING is 2.25 times more volatile than Equinix. It trades about 0.02 of its potential returns per unit of risk. Equinix is currently generating about 0.05 per unit of risk. If you would invest  354.00  in BRAGG GAMING GRP on October 21, 2024 and sell it today you would earn a total of  40.00  from holding BRAGG GAMING GRP or generate 11.3% 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.  Equinix

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 newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Equinix

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Equinix are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Equinix may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with BRAGG GAMING and Equinix

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

The idea behind BRAGG GAMING GRP and Equinix 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.