Correlation Between Royal Bank and Bragg Gaming
Can any of the company-specific risk be diversified away by investing in both Royal Bank 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 Royal Bank and Bragg Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Royal Bank of and Bragg Gaming Group, you can compare the effects of market volatilities on Royal Bank 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 Royal Bank with a short position of Bragg Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Royal Bank and Bragg Gaming.
Diversification Opportunities for Royal Bank and Bragg Gaming
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Royal and Bragg is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Royal Bank of 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 Royal Bank 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 Royal Bank of 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 Royal Bank i.e., Royal Bank and Bragg Gaming go up and down completely randomly.
Pair Corralation between Royal Bank and Bragg Gaming
Assuming the 90 days trading horizon Royal Bank is expected to generate 1.11 times less return on investment than Bragg Gaming. But when comparing it to its historical volatility, Royal Bank of is 6.03 times less risky than Bragg Gaming. It trades about 0.1 of its potential returns per unit of risk. Bragg Gaming Group is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 710.00 in Bragg Gaming Group on November 1, 2024 and sell it today you would lose (11.00) from holding Bragg Gaming Group or give up 1.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Royal Bank of vs. Bragg Gaming Group
Performance |
| Timeline |
| Royal Bank |
| Bragg Gaming Group |
Royal Bank and Bragg Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Royal Bank and Bragg Gaming
The main advantage of trading using opposite Royal Bank and Bragg Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Royal Bank 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.| Royal Bank vs. High Liner Foods | Royal Bank vs. Profound Medical Corp | Royal Bank vs. Nicola Mining | Royal Bank vs. Air Canada |
| Bragg Gaming vs. Enthusiast Gaming Holdings | Bragg Gaming vs. ESE Entertainment | Bragg Gaming vs. Braille Energy Systems |
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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