Correlation Between LILLY and Bragg Gaming

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Can any of the company-specific risk be diversified away by investing in both LILLY and Bragg Gaming 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 LILLY and Bragg Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LILLY ELI 275 and Bragg Gaming Group, you can compare the effects of market volatilities on LILLY and Bragg Gaming 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 LILLY with a short position of Bragg Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of LILLY and Bragg Gaming.

Diversification Opportunities for LILLY and Bragg Gaming

LILLYBraggDiversified AwayLILLYBraggDiversified Away100%
-0.12
  Correlation Coefficient

Good diversification

The 3 months correlation between LILLY and Bragg is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding LILLY ELI 275 and Bragg Gaming Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bragg Gaming Group and LILLY 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 LILLY ELI 275 are associated (or correlated) with Bragg Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bragg Gaming Group has no effect on the direction of LILLY i.e., LILLY and Bragg Gaming go up and down completely randomly.

Pair Corralation between LILLY and Bragg Gaming

Assuming the 90 days trading horizon LILLY ELI 275 is expected to generate 0.06 times more return on investment than Bragg Gaming. However, LILLY ELI 275 is 17.64 times less risky than Bragg Gaming. It trades about -0.1 of its potential returns per unit of risk. Bragg Gaming Group is currently generating about -0.02 per unit of risk. If you would invest  9,884  in LILLY ELI 275 on October 19, 2024 and sell it today you would lose (154.00) from holding LILLY ELI 275 or give up 1.56% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy86.89%
ValuesDaily Returns

LILLY ELI 275  vs.  Bragg Gaming Group

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -30-20-100
JavaScript chart by amCharts 3.21.15532457BH0 BRAG
       Timeline  
LILLY ELI 275 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days LILLY ELI 275 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, LILLY is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15302450233124802497.59898.599
Bragg Gaming Group 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Bragg Gaming Group 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 current stock price disturbance, may contribute to mid-run losses for the stockholders.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan33.544.55

LILLY and Bragg Gaming Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-0.41-0.21-0.0819-0.0409-0.0020470.03440.07270.150.350.55 1234
JavaScript chart by amCharts 3.21.15532457BH0 BRAG
       Returns  

Pair Trading with LILLY and Bragg Gaming

The main advantage of trading using opposite LILLY and Bragg Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LILLY position performs unexpectedly, Bragg Gaming 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 Bragg Gaming will offset losses from the drop in Bragg Gaming's long position.
The idea behind LILLY ELI 275 and Bragg Gaming Group 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.

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