Correlation Between TEXAS ROADHOUSE and BRAGG GAMING
Can any of the company-specific risk be diversified away by investing in both TEXAS ROADHOUSE 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 TEXAS ROADHOUSE and BRAGG GAMING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TEXAS ROADHOUSE and BRAGG GAMING GRP, you can compare the effects of market volatilities on TEXAS ROADHOUSE 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 TEXAS ROADHOUSE with a short position of BRAGG GAMING. Check out your portfolio center. Please also check ongoing floating volatility patterns of TEXAS ROADHOUSE and BRAGG GAMING.
Diversification Opportunities for TEXAS ROADHOUSE and BRAGG GAMING
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between TEXAS and BRAGG is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding TEXAS ROADHOUSE 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 TEXAS ROADHOUSE 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 TEXAS ROADHOUSE 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 TEXAS ROADHOUSE i.e., TEXAS ROADHOUSE and BRAGG GAMING go up and down completely randomly.
Pair Corralation between TEXAS ROADHOUSE and BRAGG GAMING
Assuming the 90 days trading horizon TEXAS ROADHOUSE is expected to under-perform the BRAGG GAMING. But the stock apears to be less risky and, when comparing its historical volatility, TEXAS ROADHOUSE is 2.29 times less risky than BRAGG GAMING. The stock trades about -0.13 of its potential returns per unit of risk. The BRAGG GAMING GRP is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 342.00 in BRAGG GAMING GRP on October 16, 2024 and sell it today you would lose (2.00) from holding BRAGG GAMING GRP or give up 0.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TEXAS ROADHOUSE vs. BRAGG GAMING GRP
Performance |
| Timeline |
| TEXAS ROADHOUSE |
| BRAGG GAMING GRP |
TEXAS ROADHOUSE and BRAGG GAMING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TEXAS ROADHOUSE and BRAGG GAMING
The main advantage of trading using opposite TEXAS ROADHOUSE and BRAGG GAMING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TEXAS ROADHOUSE 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.| TEXAS ROADHOUSE vs. Entravision Communications | TEXAS ROADHOUSE vs. Singapore Telecommunications Limited | TEXAS ROADHOUSE vs. Highlight Communications AG | TEXAS ROADHOUSE vs. Shenandoah Telecommunications |
| BRAGG GAMING vs. TEXAS ROADHOUSE | BRAGG GAMING vs. Wayside Technology Group | BRAGG GAMING vs. TITANIUM TRANSPORTGROUP | BRAGG GAMING vs. Texas Roadhouse |
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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