Correlation Between Superior Plus and BRAGG GAMING
Can any of the company-specific risk be diversified away by investing in both Superior Plus 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 Superior Plus and BRAGG GAMING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Superior Plus Corp and BRAGG GAMING GRP, you can compare the effects of market volatilities on Superior Plus 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 Superior Plus with a short position of BRAGG GAMING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Superior Plus and BRAGG GAMING.
Diversification Opportunities for Superior Plus and BRAGG GAMING
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Superior and BRAGG is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Superior Plus Corp 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 Superior Plus 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 Superior Plus Corp 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 Superior Plus i.e., Superior Plus and BRAGG GAMING go up and down completely randomly.
Pair Corralation between Superior Plus and BRAGG GAMING
Assuming the 90 days horizon Superior Plus Corp is expected to generate 0.78 times more return on investment than BRAGG GAMING. However, Superior Plus Corp is 1.28 times less risky than BRAGG GAMING. It trades about -0.06 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 487.00 in Superior Plus Corp on September 20, 2024 and sell it today you would lose (79.00) from holding Superior Plus Corp or give up 16.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Superior Plus Corp vs. BRAGG GAMING GRP
Performance |
| Timeline |
| Superior Plus Corp |
| BRAGG GAMING GRP |
Superior Plus and BRAGG GAMING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Superior Plus and BRAGG GAMING
The main advantage of trading using opposite Superior Plus and BRAGG GAMING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Superior Plus 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.| Superior Plus vs. MACOM Technology Solutions | Superior Plus vs. Playa Hotels Resorts | Superior Plus vs. Computer And Technologies | Superior Plus vs. Park Hotels Resorts |
| BRAGG GAMING vs. NEXON Co | BRAGG GAMING vs. Take Two Interactive Software | BRAGG GAMING vs. Superior Plus Corp | BRAGG GAMING vs. SIVERS SEMICONDUCTORS AB |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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