Correlation Between NAKED WINES and BRAGG GAMING
Can any of the company-specific risk be diversified away by investing in both NAKED WINES 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 NAKED WINES and BRAGG GAMING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NAKED WINES PLC and BRAGG GAMING GRP, you can compare the effects of market volatilities on NAKED WINES 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 NAKED WINES with a short position of BRAGG GAMING. Check out your portfolio center. Please also check ongoing floating volatility patterns of NAKED WINES and BRAGG GAMING.
Diversification Opportunities for NAKED WINES and BRAGG GAMING
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between NAKED and BRAGG is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding NAKED WINES PLC 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 NAKED WINES 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 NAKED WINES PLC 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 NAKED WINES i.e., NAKED WINES and BRAGG GAMING go up and down completely randomly.
Pair Corralation between NAKED WINES and BRAGG GAMING
Assuming the 90 days horizon NAKED WINES PLC is expected to under-perform the BRAGG GAMING. But the stock apears to be less risky and, when comparing its historical volatility, NAKED WINES PLC is 1.21 times less risky than BRAGG GAMING. The stock trades about -0.03 of its potential returns per unit of risk. The BRAGG GAMING GRP is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 330.00 in BRAGG GAMING GRP on October 30, 2024 and sell it today you would earn a total of 92.00 from holding BRAGG GAMING GRP or generate 27.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NAKED WINES PLC vs. BRAGG GAMING GRP
Performance |
| Timeline |
| NAKED WINES PLC |
| BRAGG GAMING GRP |
NAKED WINES and BRAGG GAMING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NAKED WINES and BRAGG GAMING
The main advantage of trading using opposite NAKED WINES and BRAGG GAMING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NAKED WINES 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.| NAKED WINES vs. Entravision Communications | NAKED WINES vs. GALENA MINING LTD | NAKED WINES vs. STGEORGE MINING LTD | NAKED WINES vs. Zijin Mining Group |
| BRAGG GAMING vs. Vulcan Materials | BRAGG GAMING vs. VULCAN MATERIALS | BRAGG GAMING vs. Harmony Gold Mining | BRAGG GAMING vs. GREENX METALS 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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