Correlation Between Arbor Metals and Bragg Gaming
Can any of the company-specific risk be diversified away by investing in both Arbor Metals 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 Arbor Metals and Bragg Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Arbor Metals Corp and Bragg Gaming Group, you can compare the effects of market volatilities on Arbor Metals 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 Arbor Metals with a short position of Bragg Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arbor Metals and Bragg Gaming.
Diversification Opportunities for Arbor Metals and Bragg Gaming
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Arbor and Bragg is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Arbor Metals Corp 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 Arbor Metals 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 Arbor Metals 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 Group has no effect on the direction of Arbor Metals i.e., Arbor Metals and Bragg Gaming go up and down completely randomly.
Pair Corralation between Arbor Metals and Bragg Gaming
Assuming the 90 days horizon Arbor Metals Corp is expected to generate 0.48 times more return on investment than Bragg Gaming. However, Arbor Metals Corp is 2.08 times less risky than Bragg Gaming. It trades about -0.17 of its potential returns per unit of risk. Bragg Gaming Group is currently generating about -0.18 per unit of risk. If you would invest 39.00 in Arbor Metals Corp on August 29, 2024 and sell it today you would lose (5.00) from holding Arbor Metals Corp or give up 12.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Arbor Metals Corp vs. Bragg Gaming Group
Performance |
| Timeline |
| Arbor Metals Corp |
| Bragg Gaming Group |
Arbor Metals and Bragg Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arbor Metals and Bragg Gaming
The main advantage of trading using opposite Arbor Metals and Bragg Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arbor Metals 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.| Arbor Metals vs. First Majestic Silver | Arbor Metals vs. Ivanhoe Energy | Arbor Metals vs. Orezone Gold Corp | Arbor Metals vs. Faraday Copper Corp |
| Bragg Gaming vs. Real Luck Group | Bragg Gaming vs. Enthusiast Gaming Holdings | Bragg Gaming vs. ESE Entertainment | Bragg Gaming vs. Braille Energy Systems |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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