Correlation Between KDA and Bragg Gaming
Can any of the company-specific risk be diversified away by investing in both KDA 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 KDA and Bragg Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KDA Group and Bragg Gaming Group, you can compare the effects of market volatilities on KDA 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 KDA with a short position of Bragg Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of KDA and Bragg Gaming.
Diversification Opportunities for KDA and Bragg Gaming
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between KDA and Bragg is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding KDA Group 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 KDA 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 KDA Group 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 KDA i.e., KDA and Bragg Gaming go up and down completely randomly.
Pair Corralation between KDA and Bragg Gaming
Assuming the 90 days horizon KDA Group is expected to generate 1.91 times more return on investment than Bragg Gaming. However, KDA is 1.91 times more volatile than Bragg Gaming Group. It trades about 0.07 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 8.50 in KDA Group on September 2, 2024 and sell it today you would earn a total of 18.50 from holding KDA Group or generate 217.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KDA Group vs. Bragg Gaming Group
Performance |
| Timeline |
| KDA Group |
| Bragg Gaming Group |
KDA and Bragg Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KDA and Bragg Gaming
The main advantage of trading using opposite KDA and Bragg Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KDA 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.| KDA vs. Advent Wireless | KDA vs. Bird Construction | KDA vs. Information Services | KDA vs. Primaris Retail RE |
| 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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