Correlation Between Bragg Gaming and Pacific Bay
Can any of the company-specific risk be diversified away by investing in both Bragg Gaming and Pacific Bay 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 Pacific Bay 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 Pacific Bay Minerals, you can compare the effects of market volatilities on Bragg Gaming and Pacific Bay 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 Pacific Bay. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bragg Gaming and Pacific Bay.
Diversification Opportunities for Bragg Gaming and Pacific Bay
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bragg and Pacific is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Bragg Gaming Group and Pacific Bay Minerals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pacific Bay Minerals 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 Pacific Bay. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pacific Bay Minerals has no effect on the direction of Bragg Gaming i.e., Bragg Gaming and Pacific Bay go up and down completely randomly.
Pair Corralation between Bragg Gaming and Pacific Bay
Assuming the 90 days trading horizon Bragg Gaming Group is expected to under-perform the Pacific Bay. In addition to that, Bragg Gaming is 1.18 times more volatile than Pacific Bay Minerals. It trades about -0.18 of its total potential returns per unit of risk. Pacific Bay Minerals is currently generating about 0.12 per unit of volatility. If you would invest 4.00 in Pacific Bay Minerals on September 4, 2024 and sell it today you would earn a total of 0.50 from holding Pacific Bay Minerals or generate 12.5% 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. Pacific Bay Minerals
Performance |
| Timeline |
| Bragg Gaming Group |
| Pacific Bay Minerals |
Bragg Gaming and Pacific Bay Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bragg Gaming and Pacific Bay
The main advantage of trading using opposite Bragg Gaming and Pacific Bay positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bragg Gaming position performs unexpectedly, Pacific Bay 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 Pacific Bay will offset losses from the drop in Pacific Bay'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 |
| Pacific Bay vs. Bip Investment Corp | Pacific Bay vs. Canaf Investments | Pacific Bay vs. Rubicon Organics | Pacific Bay vs. Arizona Metals Corp |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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