Correlation Between Bragg Gaming and Helios Fairfax
Can any of the company-specific risk be diversified away by investing in both Bragg Gaming and Helios Fairfax 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 Helios Fairfax 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 Helios Fairfax Partners, you can compare the effects of market volatilities on Bragg Gaming and Helios Fairfax 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 Helios Fairfax. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bragg Gaming and Helios Fairfax.
Diversification Opportunities for Bragg Gaming and Helios Fairfax
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bragg and Helios is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Bragg Gaming Group and Helios Fairfax Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Helios Fairfax Partners 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 Helios Fairfax. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Helios Fairfax Partners has no effect on the direction of Bragg Gaming i.e., Bragg Gaming and Helios Fairfax go up and down completely randomly.
Pair Corralation between Bragg Gaming and Helios Fairfax
Assuming the 90 days trading horizon Bragg Gaming Group is expected to under-perform the Helios Fairfax. In addition to that, Bragg Gaming is 4.59 times more volatile than Helios Fairfax Partners. It trades about -0.04 of its total potential returns per unit of risk. Helios Fairfax Partners is currently generating about -0.03 per unit of volatility. If you would invest 275.00 in Helios Fairfax Partners on September 12, 2024 and sell it today you would lose (4.00) from holding Helios Fairfax Partners or give up 1.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bragg Gaming Group vs. Helios Fairfax Partners
Performance |
| Timeline |
| Bragg Gaming Group |
| Helios Fairfax Partners |
Bragg Gaming and Helios Fairfax Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bragg Gaming and Helios Fairfax
The main advantage of trading using opposite Bragg Gaming and Helios Fairfax positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bragg Gaming position performs unexpectedly, Helios Fairfax 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 Helios Fairfax will offset losses from the drop in Helios Fairfax's long position.| Bragg Gaming vs. Berkshire Hathaway CDR | Bragg Gaming vs. Microsoft Corp CDR | Bragg Gaming vs. Apple Inc CDR | Bragg Gaming vs. Alphabet Inc CDR |
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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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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