Correlation Between Harte Hanks and Bragg Gaming
Can any of the company-specific risk be diversified away by investing in both Harte Hanks 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 Harte Hanks and Bragg Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Harte Hanks and Bragg Gaming Group, you can compare the effects of market volatilities on Harte Hanks 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 Harte Hanks with a short position of Bragg Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harte Hanks and Bragg Gaming.
Diversification Opportunities for Harte Hanks and Bragg Gaming
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Harte and Bragg is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Harte Hanks 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 Harte Hanks 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 Harte Hanks 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 Harte Hanks i.e., Harte Hanks and Bragg Gaming go up and down completely randomly.
Pair Corralation between Harte Hanks and Bragg Gaming
Considering the 90-day investment horizon Harte Hanks is expected to generate 0.6 times more return on investment than Bragg Gaming. However, Harte Hanks is 1.66 times less risky than Bragg Gaming. It trades about 0.03 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 526.00 in Harte Hanks on August 28, 2024 and sell it today you would earn a total of 65.00 from holding Harte Hanks or generate 12.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harte Hanks vs. Bragg Gaming Group
Performance |
| Timeline |
| Harte Hanks |
| Bragg Gaming Group |
Harte Hanks and Bragg Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harte Hanks and Bragg Gaming
The main advantage of trading using opposite Harte Hanks and Bragg Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harte Hanks 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.| Harte Hanks vs. FTAI Infrastructure | Harte Hanks vs. Steel Partners Holdings | Harte Hanks vs. Mammoth Energy Services | Harte Hanks vs. Seaboard |
| Bragg Gaming vs. i3 Interactive | Bragg Gaming vs. Snail, Class A | Bragg Gaming vs. Playstudios | Bragg Gaming vs. GDEV Inc |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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