Correlation Between Bragg Gaming and Real Luck
Can any of the company-specific risk be diversified away by investing in both Bragg Gaming and Real Luck 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 Real Luck 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 Real Luck Group, you can compare the effects of market volatilities on Bragg Gaming and Real Luck 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 Real Luck. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bragg Gaming and Real Luck.
Diversification Opportunities for Bragg Gaming and Real Luck
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bragg and Real is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Bragg Gaming Group and Real Luck Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Real Luck Group 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 Real Luck. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Real Luck Group has no effect on the direction of Bragg Gaming i.e., Bragg Gaming and Real Luck go up and down completely randomly.
Pair Corralation between Bragg Gaming and Real Luck
Assuming the 90 days trading horizon Bragg Gaming is expected to generate 140.25 times less return on investment than Real Luck. But when comparing it to its historical volatility, Bragg Gaming Group is 18.43 times less risky than Real Luck. It trades about 0.01 of its potential returns per unit of risk. Real Luck Group is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 12.00 in Real Luck Group on August 29, 2024 and sell it today you would earn a total of 6,588 from holding Real Luck Group or generate 54900.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Bragg Gaming Group vs. Real Luck Group
Performance |
| Timeline |
| Bragg Gaming Group |
| Real Luck Group |
Bragg Gaming and Real Luck Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bragg Gaming and Real Luck
The main advantage of trading using opposite Bragg Gaming and Real Luck positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bragg Gaming position performs unexpectedly, Real Luck 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 Real Luck will offset losses from the drop in Real Luck's long position.| Bragg Gaming vs. Orca Energy Group | Bragg Gaming vs. Rogers Communications | Bragg Gaming vs. Aclara Resources | Bragg Gaming vs. Buhler Industries |
| Real Luck vs. Apple Inc CDR | Real Luck vs. Berkshire Hathaway CDR | Real Luck vs. Microsoft Corp CDR | Real Luck vs. Alphabet Inc CDR |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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