Correlation Between Bragg Gaming and Arbor Metals
Can any of the company-specific risk be diversified away by investing in both Bragg Gaming and Arbor Metals 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 Bragg Gaming and Arbor Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bragg Gaming Group and Arbor Metals Corp, you can compare the effects of market volatilities on Bragg Gaming and Arbor Metals 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 Bragg Gaming with a short position of Arbor Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bragg Gaming and Arbor Metals.
Diversification Opportunities for Bragg Gaming and Arbor Metals
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bragg and Arbor is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Bragg Gaming Group and Arbor Metals Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arbor Metals Corp and Bragg Gaming 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 Bragg Gaming Group are associated (or correlated) with Arbor Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arbor Metals Corp has no effect on the direction of Bragg Gaming i.e., Bragg Gaming and Arbor Metals go up and down completely randomly.
Pair Corralation between Bragg Gaming and Arbor Metals
Assuming the 90 days trading horizon Bragg Gaming Group is expected to under-perform the Arbor Metals. But the stock apears to be less risky and, when comparing its historical volatility, Bragg Gaming Group is 1.09 times less risky than Arbor Metals. The stock trades about -0.13 of its potential returns per unit of risk. The Arbor Metals Corp is currently generating about -0.09 of returns per unit of risk over similar time horizon. If you would invest 57.00 in Arbor Metals Corp on September 1, 2024 and sell it today you would lose (24.00) from holding Arbor Metals Corp or give up 42.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bragg Gaming Group vs. Arbor Metals Corp
Performance |
| Timeline |
| Bragg Gaming Group |
| Arbor Metals Corp |
Bragg Gaming and Arbor Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bragg Gaming and Arbor Metals
The main advantage of trading using opposite Bragg Gaming and Arbor Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bragg Gaming position performs unexpectedly, Arbor Metals 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 Arbor Metals will offset losses from the drop in Arbor Metals' long position.| Bragg Gaming vs. Premium Income | Bragg Gaming vs. E L Financial Corp | Bragg Gaming vs. Fairfax Financial Holdings | Bragg Gaming vs. Fairfax Fin Hld |
| Arbor Metals vs. Kiplin Metals | Arbor Metals vs. Pure Energy Minerals | Arbor Metals vs. Noram Lithium Corp | Arbor Metals vs. Minnova Corp |
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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