Correlation Between Forstrong Global and Bragg Gaming
Can any of the company-specific risk be diversified away by investing in both Forstrong Global 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 Forstrong Global and Bragg Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Forstrong Global Income and Bragg Gaming Group, you can compare the effects of market volatilities on Forstrong Global 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 Forstrong Global with a short position of Bragg Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Forstrong Global and Bragg Gaming.
Diversification Opportunities for Forstrong Global and Bragg Gaming
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Forstrong and Bragg is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Forstrong Global 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 Forstrong Global 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 Forstrong Global 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 Forstrong Global i.e., Forstrong Global and Bragg Gaming go up and down completely randomly.
Pair Corralation between Forstrong Global and Bragg Gaming
Assuming the 90 days trading horizon Forstrong Global Income is expected to generate 0.07 times more return on investment than Bragg Gaming. However, Forstrong Global Income is 13.46 times less risky than Bragg Gaming. It trades about 0.11 of its potential returns per unit of risk. Bragg Gaming Group is currently generating about 0.01 per unit of risk. If you would invest 1,977 in Forstrong Global Income on September 2, 2024 and sell it today you would earn a total of 185.00 from holding Forstrong Global Income or generate 9.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 66.53% |
| Values | Daily Returns |
Forstrong Global Income vs. Bragg Gaming Group
Performance |
| Timeline |
| Forstrong Global Income |
| Bragg Gaming Group |
Forstrong Global and Bragg Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Forstrong Global and Bragg Gaming
The main advantage of trading using opposite Forstrong Global and Bragg Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Forstrong Global 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.| Forstrong Global vs. Forstrong Global Ex North | Forstrong Global vs. Forstrong Global Growth | Forstrong Global vs. Forstrong Emerging Markets | Forstrong Global vs. NBI High Yield |
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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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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