Correlation Between Bragg Gaming and Postmedia Network
Can any of the company-specific risk be diversified away by investing in both Bragg Gaming and Postmedia Network 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 Postmedia Network 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 Postmedia Network Canada, you can compare the effects of market volatilities on Bragg Gaming and Postmedia Network 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 Postmedia Network. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bragg Gaming and Postmedia Network.
Diversification Opportunities for Bragg Gaming and Postmedia Network
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bragg and Postmedia is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Bragg Gaming Group and Postmedia Network Canada in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Postmedia Network Canada 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 Postmedia Network. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Postmedia Network Canada has no effect on the direction of Bragg Gaming i.e., Bragg Gaming and Postmedia Network go up and down completely randomly.
Pair Corralation between Bragg Gaming and Postmedia Network
Assuming the 90 days trading horizon Bragg Gaming Group is expected to generate 0.67 times more return on investment than Postmedia Network. However, Bragg Gaming Group is 1.49 times less risky than Postmedia Network. It trades about 0.04 of its potential returns per unit of risk. Postmedia Network Canada is currently generating about 0.01 per unit of risk. If you would invest 464.00 in Bragg Gaming Group on November 27, 2024 and sell it today you would earn a total of 266.00 from holding Bragg Gaming Group or generate 57.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bragg Gaming Group vs. Postmedia Network Canada
Performance |
| Timeline |
| Bragg Gaming Group |
| Postmedia Network Canada |
Bragg Gaming and Postmedia Network Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bragg Gaming and Postmedia Network
The main advantage of trading using opposite Bragg Gaming and Postmedia Network positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bragg Gaming position performs unexpectedly, Postmedia Network 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 Postmedia Network will offset losses from the drop in Postmedia Network's long position.| Bragg Gaming vs. Enthusiast Gaming Holdings | Bragg Gaming vs. ESE Entertainment | Bragg Gaming vs. Braille Energy Systems |
| Postmedia Network vs. HOME DEPOT CDR | Postmedia Network vs. Fairfax Financial Holdings | Postmedia Network vs. E L Financial Corp | Postmedia Network vs. Homerun Resources |
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 Stocks Directory module to find actively traded stocks across global markets.
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