Correlation Between Aclara Resources and Bragg Gaming
Can any of the company-specific risk be diversified away by investing in both Aclara Resources 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 Aclara Resources and Bragg Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aclara Resources and Bragg Gaming Group, you can compare the effects of market volatilities on Aclara Resources 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 Aclara Resources with a short position of Bragg Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aclara Resources and Bragg Gaming.
Diversification Opportunities for Aclara Resources and Bragg Gaming
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aclara and Bragg is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Aclara Resources 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 Aclara Resources 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 Aclara Resources 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 Aclara Resources i.e., Aclara Resources and Bragg Gaming go up and down completely randomly.
Pair Corralation between Aclara Resources and Bragg Gaming
Assuming the 90 days trading horizon Aclara Resources is expected to generate 0.8 times more return on investment than Bragg Gaming. However, Aclara Resources is 1.25 times less risky than Bragg Gaming. It trades about -0.09 of its potential returns per unit of risk. Bragg Gaming Group is currently generating about -0.16 per unit of risk. If you would invest 47.00 in Aclara Resources on September 1, 2024 and sell it today you would lose (6.00) from holding Aclara Resources or give up 12.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aclara Resources vs. Bragg Gaming Group
Performance |
| Timeline |
| Aclara Resources |
| Bragg Gaming Group |
Aclara Resources and Bragg Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aclara Resources and Bragg Gaming
The main advantage of trading using opposite Aclara Resources and Bragg Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aclara Resources 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 Aclara Resources 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.| Bragg Gaming vs. Premium Income | Bragg Gaming vs. E L Financial Corp | Bragg Gaming vs. Fairfax Financial Holdings | Bragg Gaming vs. Fairfax Fin Hld |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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