Correlation Between Phibro Animal and BRAGG GAMING
Can any of the company-specific risk be diversified away by investing in both Phibro Animal 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 Phibro Animal and BRAGG GAMING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Phibro Animal Health and BRAGG GAMING GRP, you can compare the effects of market volatilities on Phibro Animal 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 Phibro Animal with a short position of BRAGG GAMING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Phibro Animal and BRAGG GAMING.
Diversification Opportunities for Phibro Animal and BRAGG GAMING
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Phibro and BRAGG is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Phibro Animal Health 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 Phibro Animal 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 Phibro Animal Health 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 Phibro Animal i.e., Phibro Animal and BRAGG GAMING go up and down completely randomly.
Pair Corralation between Phibro Animal and BRAGG GAMING
Assuming the 90 days horizon Phibro Animal Health is expected to generate 0.48 times more return on investment than BRAGG GAMING. However, Phibro Animal Health is 2.07 times less risky than BRAGG GAMING. It trades about -0.03 of its potential returns per unit of risk. BRAGG GAMING GRP is currently generating about -0.06 per unit of risk. If you would invest 2,208 in Phibro Animal Health on October 14, 2024 and sell it today you would lose (128.00) from holding Phibro Animal Health or give up 5.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Phibro Animal Health vs. BRAGG GAMING GRP
Performance |
| Timeline |
| Phibro Animal Health |
| BRAGG GAMING GRP |
Phibro Animal and BRAGG GAMING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Phibro Animal and BRAGG GAMING
The main advantage of trading using opposite Phibro Animal and BRAGG GAMING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Phibro Animal 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.| Phibro Animal vs. Superior Plus Corp | Phibro Animal vs. NMI Holdings | Phibro Animal vs. SIVERS SEMICONDUCTORS AB | Phibro Animal vs. Talanx AG |
| BRAGG GAMING vs. FIREWEED METALS P | BRAGG GAMING vs. ARDAGH METAL PACDL 0001 | BRAGG GAMING vs. Phibro Animal Health | BRAGG GAMING vs. OPKO HEALTH |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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