Correlation Between Bragg Gaming and Canlan Ice
Can any of the company-specific risk be diversified away by investing in both Bragg Gaming and Canlan Ice 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 Canlan Ice 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 Canlan Ice Sports, you can compare the effects of market volatilities on Bragg Gaming and Canlan Ice 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 Canlan Ice. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bragg Gaming and Canlan Ice.
Diversification Opportunities for Bragg Gaming and Canlan Ice
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bragg and Canlan is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Bragg Gaming Group and Canlan Ice Sports in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canlan Ice Sports 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 Canlan Ice. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canlan Ice Sports has no effect on the direction of Bragg Gaming i.e., Bragg Gaming and Canlan Ice go up and down completely randomly.
Pair Corralation between Bragg Gaming and Canlan Ice
Given the investment horizon of 90 days Bragg Gaming Group is expected to generate 27.73 times more return on investment than Canlan Ice. However, Bragg Gaming is 27.73 times more volatile than Canlan Ice Sports. It trades about 0.18 of its potential returns per unit of risk. Canlan Ice Sports is currently generating about 0.16 per unit of risk. If you would invest 322.00 in Bragg Gaming Group on October 25, 2024 and sell it today you would earn a total of 102.00 from holding Bragg Gaming Group or generate 31.68% 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. Canlan Ice Sports
Performance |
| Timeline |
| Bragg Gaming Group |
| Canlan Ice Sports |
Bragg Gaming and Canlan Ice Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bragg Gaming and Canlan Ice
The main advantage of trading using opposite Bragg Gaming and Canlan Ice positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bragg Gaming position performs unexpectedly, Canlan Ice 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 Canlan Ice will offset losses from the drop in Canlan Ice's long position.| Bragg Gaming vs. i3 Interactive | Bragg Gaming vs. Snail, Class A | Bragg Gaming vs. Playstudios | Bragg Gaming vs. GDEV Inc |
| Canlan Ice vs. Eldorado Gold Corp | Canlan Ice vs. Tyson Foods | Canlan Ice vs. Lion One Metals | Canlan Ice vs. Griffon |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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