Correlation Between PDD Holdings and Bragg Gaming
Can any of the company-specific risk be diversified away by investing in both PDD Holdings 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 PDD Holdings and Bragg Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PDD Holdings and Bragg Gaming Group, you can compare the effects of market volatilities on PDD Holdings 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 PDD Holdings with a short position of Bragg Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of PDD Holdings and Bragg Gaming.
Diversification Opportunities for PDD Holdings and Bragg Gaming
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PDD and Bragg is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding PDD Holdings 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 PDD Holdings 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 PDD Holdings 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 PDD Holdings i.e., PDD Holdings and Bragg Gaming go up and down completely randomly.
Pair Corralation between PDD Holdings and Bragg Gaming
Considering the 90-day investment horizon PDD Holdings is expected to generate 0.86 times more return on investment than Bragg Gaming. However, PDD Holdings is 1.16 times less risky than Bragg Gaming. It trades about 0.03 of its potential returns per unit of risk. Bragg Gaming Group is currently generating about -0.09 per unit of risk. If you would invest 9,998 in PDD Holdings on September 19, 2024 and sell it today you would earn a total of 244.00 from holding PDD Holdings or generate 2.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PDD Holdings vs. Bragg Gaming Group
Performance |
| Timeline |
| PDD Holdings |
| Bragg Gaming Group |
PDD Holdings and Bragg Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PDD Holdings and Bragg Gaming
The main advantage of trading using opposite PDD Holdings and Bragg Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PDD Holdings 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.| PDD Holdings vs. Alibaba Group Holding | PDD Holdings vs. Sea | PDD Holdings vs. MercadoLibre | PDD Holdings vs. Vipshop Holdings Limited |
| 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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