Correlation Between Insteel Industries and BRAGG GAMING
Can any of the company-specific risk be diversified away by investing in both Insteel Industries 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 Insteel Industries and BRAGG GAMING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Insteel Industries and BRAGG GAMING GRP, you can compare the effects of market volatilities on Insteel Industries 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 Insteel Industries with a short position of BRAGG GAMING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Insteel Industries and BRAGG GAMING.
Diversification Opportunities for Insteel Industries and BRAGG GAMING
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Insteel and BRAGG is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Insteel Industries 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 Insteel Industries 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 Insteel Industries 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 Insteel Industries i.e., Insteel Industries and BRAGG GAMING go up and down completely randomly.
Pair Corralation between Insteel Industries and BRAGG GAMING
Assuming the 90 days horizon Insteel Industries is expected to under-perform the BRAGG GAMING. But the stock apears to be less risky and, when comparing its historical volatility, Insteel Industries is 3.08 times less risky than BRAGG GAMING. The stock trades about -0.54 of its potential returns per unit of risk. The BRAGG GAMING GRP is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 308.00 in BRAGG GAMING GRP on October 11, 2024 and sell it today you would earn a total of 40.00 from holding BRAGG GAMING GRP or generate 12.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Insteel Industries vs. BRAGG GAMING GRP
Performance |
| Timeline |
| Insteel Industries |
| BRAGG GAMING GRP |
Insteel Industries and BRAGG GAMING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Insteel Industries and BRAGG GAMING
The main advantage of trading using opposite Insteel Industries and BRAGG GAMING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Insteel Industries 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.| Insteel Industries vs. Jacquet Metal Service | Insteel Industries vs. FIREWEED METALS P | Insteel Industries vs. ELMOS SEMICONDUCTOR | Insteel Industries vs. Hua Hong Semiconductor |
| BRAGG GAMING vs. Ultra Clean Holdings | BRAGG GAMING vs. Insteel Industries | BRAGG GAMING vs. Mount Gibson Iron | BRAGG GAMING vs. GALENA MINING LTD |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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