Correlation Between Bragg Gaming and Montero Mining
Can any of the company-specific risk be diversified away by investing in both Bragg Gaming and Montero Mining 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 Montero Mining 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 Montero Mining and, you can compare the effects of market volatilities on Bragg Gaming and Montero Mining 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 Montero Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bragg Gaming and Montero Mining.
Diversification Opportunities for Bragg Gaming and Montero Mining
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bragg and Montero is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Bragg Gaming Group and Montero Mining and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Montero Mining 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 Montero Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Montero Mining has no effect on the direction of Bragg Gaming i.e., Bragg Gaming and Montero Mining go up and down completely randomly.
Pair Corralation between Bragg Gaming and Montero Mining
Assuming the 90 days trading horizon Bragg Gaming is expected to generate 34.24 times less return on investment than Montero Mining. But when comparing it to its historical volatility, Bragg Gaming Group is 3.57 times less risky than Montero Mining. It trades about 0.01 of its potential returns per unit of risk. Montero Mining and is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 3.00 in Montero Mining and on September 5, 2024 and sell it today you would earn a total of 28.00 from holding Montero Mining and or generate 933.33% 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. Montero Mining and
Performance |
| Timeline |
| Bragg Gaming Group |
| Montero Mining |
Bragg Gaming and Montero Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bragg Gaming and Montero Mining
The main advantage of trading using opposite Bragg Gaming and Montero Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bragg Gaming position performs unexpectedly, Montero Mining 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 Montero Mining will offset losses from the drop in Montero Mining's long position.| Bragg Gaming vs. Walmart Inc CDR | Bragg Gaming vs. Amazon CDR | Bragg Gaming vs. Berkshire Hathaway CDR | Bragg Gaming vs. UnitedHealth Group CDR |
| Montero Mining vs. Brookfield Asset Management | Montero Mining vs. High Liner Foods | Montero Mining vs. Capstone Mining Corp | Montero Mining vs. Monument Mining Limited |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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