Correlation Between High Liner and Bragg Gaming
Can any of the company-specific risk be diversified away by investing in both High Liner 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 High Liner and Bragg Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between High Liner Foods and Bragg Gaming Group, you can compare the effects of market volatilities on High Liner 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 High Liner with a short position of Bragg Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of High Liner and Bragg Gaming.
Diversification Opportunities for High Liner and Bragg Gaming
-0.9 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between High and Bragg is -0.9. Overlapping area represents the amount of risk that can be diversified away by holding High Liner Foods 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 High Liner 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 High Liner Foods 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 High Liner i.e., High Liner and Bragg Gaming go up and down completely randomly.
Pair Corralation between High Liner and Bragg Gaming
Assuming the 90 days trading horizon High Liner Foods is expected to generate 0.25 times more return on investment than Bragg Gaming. However, High Liner Foods is 4.06 times less risky than Bragg Gaming. It trades about 0.51 of its potential returns per unit of risk. Bragg Gaming Group is currently generating about -0.18 per unit of risk. If you would invest 1,286 in High Liner Foods on September 3, 2024 and sell it today you would earn a total of 255.00 from holding High Liner Foods or generate 19.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
High Liner Foods vs. Bragg Gaming Group
Performance |
| Timeline |
| High Liner Foods |
| Bragg Gaming Group |
High Liner and Bragg Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with High Liner and Bragg Gaming
The main advantage of trading using opposite High Liner and Bragg Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if High Liner 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.| High Liner vs. Leons Furniture Limited | High Liner vs. Autocanada | High Liner vs. Maple Leaf Foods | High Liner vs. Premium Brands Holdings |
| Bragg Gaming vs. Real Luck Group | 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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