Correlation Between SANOK RUBBER and BRAGG GAMING
Can any of the company-specific risk be diversified away by investing in both SANOK RUBBER 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 SANOK RUBBER and BRAGG GAMING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SANOK RUBBER ZY and BRAGG GAMING GRP, you can compare the effects of market volatilities on SANOK RUBBER 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 SANOK RUBBER with a short position of BRAGG GAMING. Check out your portfolio center. Please also check ongoing floating volatility patterns of SANOK RUBBER and BRAGG GAMING.
Diversification Opportunities for SANOK RUBBER and BRAGG GAMING
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between SANOK and BRAGG is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding SANOK RUBBER ZY and BRAGG GAMING GRP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BRAGG GAMING GRP and SANOK RUBBER 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 SANOK RUBBER ZY 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 GRP has no effect on the direction of SANOK RUBBER i.e., SANOK RUBBER and BRAGG GAMING go up and down completely randomly.
Pair Corralation between SANOK RUBBER and BRAGG GAMING
Assuming the 90 days horizon SANOK RUBBER ZY is expected to generate 0.21 times more return on investment than BRAGG GAMING. However, SANOK RUBBER ZY is 4.86 times less risky than BRAGG GAMING. It trades about 0.19 of its potential returns per unit of risk. BRAGG GAMING GRP is currently generating about -0.08 per unit of risk. If you would invest 442.00 in SANOK RUBBER ZY on October 1, 2024 and sell it today you would earn a total of 38.00 from holding SANOK RUBBER ZY or generate 8.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SANOK RUBBER ZY vs. BRAGG GAMING GRP
Performance |
| Timeline |
| SANOK RUBBER ZY |
| BRAGG GAMING GRP |
SANOK RUBBER and BRAGG GAMING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SANOK RUBBER and BRAGG GAMING
The main advantage of trading using opposite SANOK RUBBER and BRAGG GAMING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SANOK RUBBER 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.| SANOK RUBBER vs. Casio Computer CoLtd | SANOK RUBBER vs. MACOM Technology Solutions | SANOK RUBBER vs. Computer And Technologies | SANOK RUBBER vs. Align Technology |
| BRAGG GAMING vs. Lamar Advertising | BRAGG GAMING vs. EVS Broadcast Equipment | BRAGG GAMING vs. Kaufman Broad SA | BRAGG GAMING vs. TITANIUM TRANSPORTGROUP |
Check out your portfolio center.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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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