Correlation Between Canoe EIT and Bragg Gaming
Can any of the company-specific risk be diversified away by investing in both Canoe EIT 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 Canoe EIT and Bragg Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canoe EIT Income and Bragg Gaming Group, you can compare the effects of market volatilities on Canoe EIT 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 Canoe EIT with a short position of Bragg Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canoe EIT and Bragg Gaming.
Diversification Opportunities for Canoe EIT and Bragg Gaming
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Canoe and Bragg is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Canoe EIT Income and Bragg Gaming Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bragg Gaming Group and Canoe EIT 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 Canoe EIT Income 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 Group has no effect on the direction of Canoe EIT i.e., Canoe EIT and Bragg Gaming go up and down completely randomly.
Pair Corralation between Canoe EIT and Bragg Gaming
Assuming the 90 days trading horizon Canoe EIT Income is expected to generate 0.14 times more return on investment than Bragg Gaming. However, Canoe EIT Income is 7.17 times less risky than Bragg Gaming. It trades about 0.19 of its potential returns per unit of risk. Bragg Gaming Group is currently generating about 0.02 per unit of risk. If you would invest 1,238 in Canoe EIT Income on November 1, 2024 and sell it today you would earn a total of 304.00 from holding Canoe EIT Income or generate 24.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Canoe EIT Income vs. Bragg Gaming Group
Performance |
| Timeline |
| Canoe EIT Income |
| Bragg Gaming Group |
Canoe EIT and Bragg Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canoe EIT and Bragg Gaming
The main advantage of trading using opposite Canoe EIT and Bragg Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canoe EIT 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.| Canoe EIT vs. Dividend 15 Split | Canoe EIT vs. E Split Corp | Canoe EIT vs. Global Dividend Growth | Canoe EIT vs. Dividend Growth Split |
| Bragg Gaming vs. Enthusiast Gaming Holdings | Bragg Gaming vs. ESE Entertainment | Bragg Gaming vs. Braille Energy Systems |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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