Correlation Between Bragg Gaming and Cadence Design
Can any of the company-specific risk be diversified away by investing in both Bragg Gaming and Cadence Design 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 Cadence Design 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 Cadence Design Systems, you can compare the effects of market volatilities on Bragg Gaming and Cadence Design 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 Cadence Design. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bragg Gaming and Cadence Design.
Diversification Opportunities for Bragg Gaming and Cadence Design
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bragg and Cadence is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Bragg Gaming Group and Cadence Design Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cadence Design Systems 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 Cadence Design. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cadence Design Systems has no effect on the direction of Bragg Gaming i.e., Bragg Gaming and Cadence Design go up and down completely randomly.
Pair Corralation between Bragg Gaming and Cadence Design
Given the investment horizon of 90 days Bragg Gaming Group is expected to under-perform the Cadence Design. In addition to that, Bragg Gaming is 1.5 times more volatile than Cadence Design Systems. It trades about -0.07 of its total potential returns per unit of risk. Cadence Design Systems is currently generating about 0.01 per unit of volatility. If you would invest 30,156 in Cadence Design Systems on October 12, 2024 and sell it today you would earn a total of 117.00 from holding Cadence Design Systems or generate 0.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bragg Gaming Group vs. Cadence Design Systems
Performance |
| Timeline |
| Bragg Gaming Group |
| Cadence Design Systems |
Bragg Gaming and Cadence Design Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bragg Gaming and Cadence Design
The main advantage of trading using opposite Bragg Gaming and Cadence Design positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bragg Gaming position performs unexpectedly, Cadence Design 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 Cadence Design will offset losses from the drop in Cadence Design's long position.| Bragg Gaming vs. i3 Interactive | Bragg Gaming vs. Snail, Class A | Bragg Gaming vs. Playstudios | Bragg Gaming vs. GDEV Inc |
| Cadence Design vs. Workday | Cadence Design vs. Salesforce | Cadence Design vs. Intuit Inc | Cadence Design vs. Snowflake |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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