Correlation Between China Communications and BRAGG GAMING
Can any of the company-specific risk be diversified away by investing in both China Communications and BRAGG GAMING 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 China Communications and BRAGG GAMING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Communications Services and BRAGG GAMING GRP, you can compare the effects of market volatilities on China Communications and BRAGG GAMING 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 China Communications with a short position of BRAGG GAMING. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Communications and BRAGG GAMING.
Diversification Opportunities for China Communications and BRAGG GAMING
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between China and BRAGG is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding China Communications Services and BRAGG GAMING GRP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BRAGG GAMING GRP and China Communications 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 China Communications Services are associated (or correlated) with BRAGG GAMING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BRAGG GAMING GRP has no effect on the direction of China Communications i.e., China Communications and BRAGG GAMING go up and down completely randomly.
Pair Corralation between China Communications and BRAGG GAMING
Assuming the 90 days horizon China Communications Services is expected to generate 1.78 times more return on investment than BRAGG GAMING. However, China Communications is 1.78 times more volatile than BRAGG GAMING GRP. It trades about 0.08 of its potential returns per unit of risk. BRAGG GAMING GRP is currently generating about 0.01 per unit of risk. If you would invest 10.00 in China Communications Services on September 30, 2024 and sell it today you would earn a total of 44.00 from holding China Communications Services or generate 440.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Communications Services vs. BRAGG GAMING GRP
Performance |
| Timeline |
| China Communications |
| BRAGG GAMING GRP |
China Communications and BRAGG GAMING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Communications and BRAGG GAMING
The main advantage of trading using opposite China Communications and BRAGG GAMING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Communications position performs unexpectedly, BRAGG GAMING 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 BRAGG GAMING will offset losses from the drop in BRAGG GAMING's long position.| China Communications vs. Lifeway Foods | China Communications vs. TreeHouse Foods | China Communications vs. Evolution Mining Limited | China Communications vs. Perseus Mining Limited |
| BRAGG GAMING vs. Lamar Advertising | BRAGG GAMING vs. EVS Broadcast Equipment | BRAGG GAMING vs. Kaufman Broad SA | BRAGG GAMING vs. TITANIUM TRANSPORTGROUP |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |