Correlation Between Bragg Gaming and Brookfield Business
Can any of the company-specific risk be diversified away by investing in both Bragg Gaming and Brookfield Business 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 Brookfield Business 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 Brookfield Business Corp, you can compare the effects of market volatilities on Bragg Gaming and Brookfield Business 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 Brookfield Business. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bragg Gaming and Brookfield Business.
Diversification Opportunities for Bragg Gaming and Brookfield Business
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bragg and Brookfield is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Bragg Gaming Group and Brookfield Business Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brookfield Business 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 Brookfield Business. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brookfield Business Corp has no effect on the direction of Bragg Gaming i.e., Bragg Gaming and Brookfield Business go up and down completely randomly.
Pair Corralation between Bragg Gaming and Brookfield Business
Assuming the 90 days trading horizon Bragg Gaming Group is expected to under-perform the Brookfield Business. In addition to that, Bragg Gaming is 3.12 times more volatile than Brookfield Business Corp. It trades about -0.18 of its total potential returns per unit of risk. Brookfield Business Corp is currently generating about 0.26 per unit of volatility. If you would invest 3,417 in Brookfield Business Corp on September 4, 2024 and sell it today you would earn a total of 436.00 from holding Brookfield Business Corp or generate 12.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bragg Gaming Group vs. Brookfield Business Corp
Performance |
| Timeline |
| Bragg Gaming Group |
| Brookfield Business Corp |
Bragg Gaming and Brookfield Business Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bragg Gaming and Brookfield Business
The main advantage of trading using opposite Bragg Gaming and Brookfield Business positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bragg Gaming position performs unexpectedly, Brookfield Business 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 Brookfield Business will offset losses from the drop in Brookfield Business' long position.| Bragg Gaming vs. Real Luck Group | Bragg Gaming vs. Enthusiast Gaming Holdings | Bragg Gaming vs. ESE Entertainment | Bragg Gaming vs. Braille Energy Systems |
| Brookfield Business vs. Contagious Gaming | Brookfield Business vs. Ocumetics Technology Corp | Brookfield Business vs. Quorum Information Technologies | Brookfield Business vs. Firan Technology Group |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |