Correlation Between Bragg Gaming and Canadian Utilities
Can any of the company-specific risk be diversified away by investing in both Bragg Gaming and Canadian Utilities 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 Canadian Utilities 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 Canadian Utilities Ltd, you can compare the effects of market volatilities on Bragg Gaming and Canadian Utilities 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 Canadian Utilities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bragg Gaming and Canadian Utilities.
Diversification Opportunities for Bragg Gaming and Canadian Utilities
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bragg and Canadian is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Bragg Gaming Group and Canadian Utilities Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canadian Utilities 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 Canadian Utilities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canadian Utilities has no effect on the direction of Bragg Gaming i.e., Bragg Gaming and Canadian Utilities go up and down completely randomly.
Pair Corralation between Bragg Gaming and Canadian Utilities
Assuming the 90 days trading horizon Bragg Gaming Group is expected to under-perform the Canadian Utilities. In addition to that, Bragg Gaming is 5.44 times more volatile than Canadian Utilities Ltd. It trades about -0.07 of its total potential returns per unit of risk. Canadian Utilities Ltd is currently generating about 0.09 per unit of volatility. If you would invest 2,288 in Canadian Utilities Ltd on September 23, 2024 and sell it today you would earn a total of 188.00 from holding Canadian Utilities Ltd or generate 8.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bragg Gaming Group vs. Canadian Utilities Ltd
Performance |
| Timeline |
| Bragg Gaming Group |
| Canadian Utilities |
Bragg Gaming and Canadian Utilities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bragg Gaming and Canadian Utilities
The main advantage of trading using opposite Bragg Gaming and Canadian Utilities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bragg Gaming position performs unexpectedly, Canadian Utilities 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 Canadian Utilities will offset losses from the drop in Canadian Utilities' long position.| Bragg Gaming vs. Enthusiast Gaming Holdings | Bragg Gaming vs. ESE Entertainment | Bragg Gaming vs. Braille Energy Systems | Bragg Gaming vs. iShares Canadian HYBrid |
| Canadian Utilities vs. Cogeco Communications | Canadian Utilities vs. VIP Entertainment Technologies | Canadian Utilities vs. Primaris Retail RE | Canadian Utilities vs. Data Communications Management |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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