Correlation Between Amazon CDR and Bragg Gaming
Can any of the company-specific risk be diversified away by investing in both Amazon CDR 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 Amazon CDR and Bragg Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amazon CDR and Bragg Gaming Group, you can compare the effects of market volatilities on Amazon CDR 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 Amazon CDR with a short position of Bragg Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amazon CDR and Bragg Gaming.
Diversification Opportunities for Amazon CDR and Bragg Gaming
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Amazon and Bragg is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Amazon CDR 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 Amazon CDR 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 Amazon CDR 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 Amazon CDR i.e., Amazon CDR and Bragg Gaming go up and down completely randomly.
Pair Corralation between Amazon CDR and Bragg Gaming
Assuming the 90 days trading horizon Amazon CDR is expected to generate 0.34 times more return on investment than Bragg Gaming. However, Amazon CDR is 2.92 times less risky than Bragg Gaming. It trades about 0.15 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 2,299 in Amazon CDR on August 31, 2024 and sell it today you would earn a total of 171.00 from holding Amazon CDR or generate 7.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amazon CDR vs. Bragg Gaming Group
Performance |
| Timeline |
| Amazon CDR |
| Bragg Gaming Group |
Amazon CDR and Bragg Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amazon CDR and Bragg Gaming
The main advantage of trading using opposite Amazon CDR and Bragg Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amazon CDR 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.| Amazon CDR vs. Berkshire Hathaway CDR | Amazon CDR vs. JPMorgan Chase Co | Amazon CDR vs. Bank of America | Amazon CDR vs. Alphabet Inc CDR |
| Bragg Gaming vs. Cielo Waste Solutions | Bragg Gaming vs. Eros Resources Corp | Bragg Gaming vs. Forstrong Global Income | Bragg Gaming vs. iShares Canadian HYBrid |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |