Correlation Between Bragg Gaming and Enthusiast Gaming
Can any of the company-specific risk be diversified away by investing in both Bragg Gaming and Enthusiast 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 Bragg Gaming and Enthusiast Gaming 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 Enthusiast Gaming Holdings, you can compare the effects of market volatilities on Bragg Gaming and Enthusiast 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 Bragg Gaming with a short position of Enthusiast Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bragg Gaming and Enthusiast Gaming.
Diversification Opportunities for Bragg Gaming and Enthusiast Gaming
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bragg and Enthusiast is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Bragg Gaming Group and Enthusiast Gaming Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enthusiast Gaming 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 Enthusiast Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enthusiast Gaming has no effect on the direction of Bragg Gaming i.e., Bragg Gaming and Enthusiast Gaming go up and down completely randomly.
Pair Corralation between Bragg Gaming and Enthusiast Gaming
Assuming the 90 days trading horizon Bragg Gaming Group is expected to under-perform the Enthusiast Gaming. But the stock apears to be less risky and, when comparing its historical volatility, Bragg Gaming Group is 1.72 times less risky than Enthusiast Gaming. The stock trades about -0.04 of its potential returns per unit of risk. The Enthusiast Gaming Holdings is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 20.00 in Enthusiast Gaming Holdings on August 29, 2024 and sell it today you would lose (6.00) from holding Enthusiast Gaming Holdings or give up 30.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bragg Gaming Group vs. Enthusiast Gaming Holdings
Performance |
| Timeline |
| Bragg Gaming Group |
| Enthusiast Gaming |
Bragg Gaming and Enthusiast Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bragg Gaming and Enthusiast Gaming
The main advantage of trading using opposite Bragg Gaming and Enthusiast Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bragg Gaming position performs unexpectedly, Enthusiast 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 Enthusiast Gaming will offset losses from the drop in Enthusiast Gaming's 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 |
| Enthusiast Gaming vs. Royal Helium | Enthusiast Gaming vs. Excelsior Mining Corp | Enthusiast Gaming vs. Vista Gold | Enthusiast Gaming vs. TeraGo Inc |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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