Correlation Between Bragg Gaming and Doubledown Interactive
Can any of the company-specific risk be diversified away by investing in both Bragg Gaming and Doubledown Interactive 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 Doubledown Interactive 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 Doubledown Interactive Co, you can compare the effects of market volatilities on Bragg Gaming and Doubledown Interactive 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 Doubledown Interactive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bragg Gaming and Doubledown Interactive.
Diversification Opportunities for Bragg Gaming and Doubledown Interactive
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bragg and Doubledown is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Bragg Gaming Group and Doubledown Interactive Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Doubledown Interactive 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 Doubledown Interactive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Doubledown Interactive has no effect on the direction of Bragg Gaming i.e., Bragg Gaming and Doubledown Interactive go up and down completely randomly.
Pair Corralation between Bragg Gaming and Doubledown Interactive
Given the investment horizon of 90 days Bragg Gaming Group is expected to under-perform the Doubledown Interactive. In addition to that, Bragg Gaming is 2.02 times more volatile than Doubledown Interactive Co. It trades about -0.24 of its total potential returns per unit of risk. Doubledown Interactive Co is currently generating about 0.02 per unit of volatility. If you would invest 1,449 in Doubledown Interactive Co on August 24, 2024 and sell it today you would earn a total of 4.00 from holding Doubledown Interactive Co or generate 0.28% 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. Doubledown Interactive Co
Performance |
| Timeline |
| Bragg Gaming Group |
| Doubledown Interactive |
Bragg Gaming and Doubledown Interactive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bragg Gaming and Doubledown Interactive
The main advantage of trading using opposite Bragg Gaming and Doubledown Interactive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bragg Gaming position performs unexpectedly, Doubledown Interactive 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 Doubledown Interactive will offset losses from the drop in Doubledown Interactive's long position.| Bragg Gaming vs. i3 Interactive | Bragg Gaming vs. Snail, Class A | Bragg Gaming vs. Playstudios | Bragg Gaming vs. GDEV Inc |
| Doubledown Interactive vs. GDEV Inc | Doubledown Interactive vs. AEye Inc | Doubledown Interactive vs. Arqit Quantum Warrants | Doubledown Interactive vs. Xos Equity Warrants |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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