Correlation Between Bragg Gaming and HOME DEPOT
Can any of the company-specific risk be diversified away by investing in both Bragg Gaming and HOME DEPOT 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 HOME DEPOT 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 HOME DEPOT CDR, you can compare the effects of market volatilities on Bragg Gaming and HOME DEPOT 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 HOME DEPOT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bragg Gaming and HOME DEPOT.
Diversification Opportunities for Bragg Gaming and HOME DEPOT
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bragg and HOME is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Bragg Gaming Group and HOME DEPOT CDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HOME DEPOT 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 HOME DEPOT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HOME DEPOT CDR has no effect on the direction of Bragg Gaming i.e., Bragg Gaming and HOME DEPOT go up and down completely randomly.
Pair Corralation between Bragg Gaming and HOME DEPOT
Assuming the 90 days trading horizon Bragg Gaming Group is expected to under-perform the HOME DEPOT. In addition to that, Bragg Gaming is 4.42 times more volatile than HOME DEPOT CDR. It trades about -0.18 of its total potential returns per unit of risk. HOME DEPOT CDR is currently generating about 0.18 per unit of volatility. If you would invest 2,591 in HOME DEPOT CDR on August 29, 2024 and sell it today you would earn a total of 164.00 from holding HOME DEPOT CDR or generate 6.33% 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. HOME DEPOT CDR
Performance |
| Timeline |
| Bragg Gaming Group |
| HOME DEPOT CDR |
Bragg Gaming and HOME DEPOT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bragg Gaming and HOME DEPOT
The main advantage of trading using opposite Bragg Gaming and HOME DEPOT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bragg Gaming position performs unexpectedly, HOME DEPOT 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 HOME DEPOT will offset losses from the drop in HOME DEPOT'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 |
| HOME DEPOT vs. Eros Resources Corp | HOME DEPOT vs. Apple Inc CDR | HOME DEPOT vs. European Residential Real | HOME DEPOT vs. Canadian Utilities Ltd |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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