Correlation Between Bragg Gaming and Alphabet
Can any of the company-specific risk be diversified away by investing in both Bragg Gaming and Alphabet 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 Alphabet 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 Alphabet Inc CDR, you can compare the effects of market volatilities on Bragg Gaming and Alphabet 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 Alphabet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bragg Gaming and Alphabet.
Diversification Opportunities for Bragg Gaming and Alphabet
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bragg and Alphabet is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Bragg Gaming Group and Alphabet Inc CDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alphabet CDR 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 Alphabet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alphabet CDR has no effect on the direction of Bragg Gaming i.e., Bragg Gaming and Alphabet go up and down completely randomly.
Pair Corralation between Bragg Gaming and Alphabet
Assuming the 90 days trading horizon Bragg Gaming Group is expected to generate 1.84 times more return on investment than Alphabet. However, Bragg Gaming is 1.84 times more volatile than Alphabet Inc CDR. It trades about 0.18 of its potential returns per unit of risk. Alphabet Inc CDR is currently generating about 0.23 per unit of risk. If you would invest 458.00 in Bragg Gaming Group on September 19, 2024 and sell it today you would earn a total of 75.00 from holding Bragg Gaming Group or generate 16.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bragg Gaming Group vs. Alphabet Inc CDR
Performance |
| Timeline |
| Bragg Gaming Group |
| Alphabet CDR |
Bragg Gaming and Alphabet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bragg Gaming and Alphabet
The main advantage of trading using opposite Bragg Gaming and Alphabet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bragg Gaming position performs unexpectedly, Alphabet 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 Alphabet will offset losses from the drop in Alphabet'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 |
| Alphabet vs. Nicola Mining | Alphabet vs. MAG Silver Corp | Alphabet vs. Postmedia Network Canada | Alphabet vs. TGS Esports |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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