Correlation Between Utah Medical and Bragg Gaming

Can any of the company-specific risk be diversified away by investing in both Utah Medical 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 Utah Medical and Bragg Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Utah Medical Products and Bragg Gaming Group, you can compare the effects of market volatilities on Utah Medical 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 Utah Medical with a short position of Bragg Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Utah Medical and Bragg Gaming.

Diversification Opportunities for Utah Medical and Bragg Gaming

0.3

Correlation Coefficient

Utah Medical  Bragg Gaming

Weak diversification

The 3 months correlation between Utah and Bragg is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Utah Medical Products 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 Utah Medical 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 Utah Medical Products 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 Utah Medical i.e., Utah Medical and Bragg Gaming go up and down completely randomly.

Pair Corralation between Utah Medical and Bragg Gaming

Given the investment horizon of 90 days Utah Medical Products is expected to under-perform the Bragg Gaming. But the stock apears to be less risky and, when comparing its historical volatility, Utah Medical Products is 2.37 times less risky than Bragg Gaming. The stock trades about -0.04 of its potential returns per unit of risk. The Bragg Gaming Group is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  394.00  in Bragg Gaming Group on October 26, 2024 and sell it today you would earn a total of  54.00  from holding Bragg Gaming Group or generate 13.71% return on investment over 90 days.

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

Utah Medical Products  vs.  Bragg Gaming Group

Utah Medical Products

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Utah Medical Products has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound primary indicators, Utah Medical is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Bragg Gaming Group

Risk-Adjusted Performance

0 of 100

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.

Pair Trading with Utah Medical and Bragg Gaming

The main advantage of trading using opposite Utah Medical and Bragg Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Utah Medical 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 Utah Medical Products 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.