Correlation Between Electronic Arts and BRAGG GAMING
Can any of the company-specific risk be diversified away by investing in both Electronic Arts 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 Electronic Arts and BRAGG GAMING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Electronic Arts and BRAGG GAMING GRP, you can compare the effects of market volatilities on Electronic Arts 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 Electronic Arts with a short position of BRAGG GAMING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Electronic Arts and BRAGG GAMING.
Diversification Opportunities for Electronic Arts and BRAGG GAMING
-0.9 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Electronic and BRAGG is -0.9. Overlapping area represents the amount of risk that can be diversified away by holding Electronic Arts 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 Electronic Arts 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 Electronic Arts 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 Electronic Arts i.e., Electronic Arts and BRAGG GAMING go up and down completely randomly.
Pair Corralation between Electronic Arts and BRAGG GAMING
Assuming the 90 days horizon Electronic Arts is expected to generate 0.37 times more return on investment than BRAGG GAMING. However, Electronic Arts is 2.73 times less risky than BRAGG GAMING. It trades about 0.06 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 10,417 in Electronic Arts on September 26, 2024 and sell it today you would earn a total of 3,769 from holding Electronic Arts or generate 36.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Electronic Arts vs. BRAGG GAMING GRP
Performance |
| Timeline |
| Electronic Arts |
| BRAGG GAMING GRP |
Electronic Arts and BRAGG GAMING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Electronic Arts and BRAGG GAMING
The main advantage of trading using opposite Electronic Arts and BRAGG GAMING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Electronic Arts 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.| Electronic Arts vs. Nintendo Co | Electronic Arts vs. Sea Limited | Electronic Arts vs. NEXON Co | Electronic Arts vs. Bilibili |
| BRAGG GAMING vs. Nintendo Co | BRAGG GAMING vs. Sea Limited | BRAGG GAMING vs. Electronic Arts | BRAGG GAMING vs. NEXON Co |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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