Correlation Between NEXON and Bragg Gaming
Can any of the company-specific risk be diversified away by investing in both NEXON 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 NEXON and Bragg Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NEXON Co and Bragg Gaming Group, you can compare the effects of market volatilities on NEXON 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 NEXON with a short position of Bragg Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of NEXON and Bragg Gaming.
Diversification Opportunities for NEXON and Bragg Gaming
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between NEXON and Bragg is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding NEXON Co 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 NEXON 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 NEXON Co 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 NEXON i.e., NEXON and Bragg Gaming go up and down completely randomly.
Pair Corralation between NEXON and Bragg Gaming
Assuming the 90 days horizon NEXON Co is expected to under-perform the Bragg Gaming. But the pink sheet apears to be less risky and, when comparing its historical volatility, NEXON Co is 1.19 times less risky than Bragg Gaming. The pink sheet trades about -0.14 of its potential returns per unit of risk. The Bragg Gaming Group is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 327.00 in Bragg Gaming Group on September 19, 2024 and sell it today you would earn a total of 47.00 from holding Bragg Gaming Group or generate 14.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
NEXON Co vs. Bragg Gaming Group
Performance |
| Timeline |
| NEXON |
| Bragg Gaming Group |
NEXON and Bragg Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NEXON and Bragg Gaming
The main advantage of trading using opposite NEXON and Bragg Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NEXON 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.| NEXON vs. Playstudios | NEXON vs. Doubledown Interactive Co | NEXON vs. Bragg Gaming Group | NEXON vs. Golden Matrix Group |
| Bragg Gaming vs. Global E Online | Bragg Gaming vs. Etsy Inc | Bragg Gaming vs. PDD Holdings | Bragg Gaming vs. JD Inc Adr |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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