Correlation Between Nicola Mining and Bragg Gaming
Can any of the company-specific risk be diversified away by investing in both Nicola Mining 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 Nicola Mining and Bragg Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nicola Mining and Bragg Gaming Group, you can compare the effects of market volatilities on Nicola Mining 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 Nicola Mining with a short position of Bragg Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nicola Mining and Bragg Gaming.
Diversification Opportunities for Nicola Mining and Bragg Gaming
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nicola and Bragg is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Nicola Mining 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 Nicola Mining 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 Nicola Mining 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 Nicola Mining i.e., Nicola Mining and Bragg Gaming go up and down completely randomly.
Pair Corralation between Nicola Mining and Bragg Gaming
Assuming the 90 days horizon Nicola Mining is expected to generate 1.31 times more return on investment than Bragg Gaming. However, Nicola Mining is 1.31 times more volatile than Bragg Gaming Group. It trades about 0.05 of its potential returns per unit of risk. Bragg Gaming Group is currently generating about -0.05 per unit of risk. If you would invest 21.00 in Nicola Mining on September 1, 2024 and sell it today you would earn a total of 6.00 from holding Nicola Mining or generate 28.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nicola Mining vs. Bragg Gaming Group
Performance |
| Timeline |
| Nicola Mining |
| Bragg Gaming Group |
Nicola Mining and Bragg Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nicola Mining and Bragg Gaming
The main advantage of trading using opposite Nicola Mining and Bragg Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nicola Mining 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.| Nicola Mining vs. Kiplin Metals | Nicola Mining vs. Pure Energy Minerals | Nicola Mining vs. Noram Lithium Corp | Nicola Mining vs. Minnova Corp |
| Bragg Gaming vs. Premium Income | Bragg Gaming vs. E L Financial Corp | Bragg Gaming vs. Fairfax Financial Holdings | Bragg Gaming vs. Fairfax Fin Hld |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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