Correlation Between Fairfax Financial and Bragg Gaming
Can any of the company-specific risk be diversified away by investing in both Fairfax Financial 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 Fairfax Financial and Bragg Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fairfax Financial Holdings and Bragg Gaming Group, you can compare the effects of market volatilities on Fairfax Financial 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 Fairfax Financial with a short position of Bragg Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fairfax Financial and Bragg Gaming.
Diversification Opportunities for Fairfax Financial and Bragg Gaming
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Fairfax and Bragg is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Fairfax Financial Holdings 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 Fairfax Financial 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 Fairfax Financial Holdings 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 Fairfax Financial i.e., Fairfax Financial and Bragg Gaming go up and down completely randomly.
Pair Corralation between Fairfax Financial and Bragg Gaming
If you would invest 506.00 in Bragg Gaming Group on November 8, 2024 and sell it today you would earn a total of 284.00 from holding Bragg Gaming Group or generate 56.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Fairfax Financial Holdings vs. Bragg Gaming Group
Performance |
| Timeline |
| Fairfax Financial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
| Bragg Gaming Group |
Fairfax Financial and Bragg Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fairfax Financial and Bragg Gaming
The main advantage of trading using opposite Fairfax Financial and Bragg Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fairfax Financial 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.| Fairfax Financial vs. Intact Financial | Fairfax Financial vs. iA Financial | Fairfax Financial vs. TMX Group Limited | Fairfax Financial vs. Onex Corp |
| 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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