Correlation Between SMA Solar and BRAGG GAMING
Can any of the company-specific risk be diversified away by investing in both SMA Solar 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 SMA Solar and BRAGG GAMING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SMA Solar Technology and BRAGG GAMING GRP, you can compare the effects of market volatilities on SMA Solar 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 SMA Solar with a short position of BRAGG GAMING. Check out your portfolio center. Please also check ongoing floating volatility patterns of SMA Solar and BRAGG GAMING.
Diversification Opportunities for SMA Solar and BRAGG GAMING
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SMA and BRAGG is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding SMA Solar Technology 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 SMA Solar 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 SMA Solar Technology 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 SMA Solar i.e., SMA Solar and BRAGG GAMING go up and down completely randomly.
Pair Corralation between SMA Solar and BRAGG GAMING
Assuming the 90 days horizon SMA Solar Technology is expected to under-perform the BRAGG GAMING. In addition to that, SMA Solar is 1.08 times more volatile than BRAGG GAMING GRP. It trades about -0.06 of its total potential returns per unit of risk. BRAGG GAMING GRP is currently generating about 0.01 per unit of volatility. If you would invest 388.00 in BRAGG GAMING GRP on October 11, 2024 and sell it today you would lose (28.00) from holding BRAGG GAMING GRP or give up 7.22% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
SMA Solar Technology vs. BRAGG GAMING GRP
Performance |
Timeline |
SMA Solar Technology |
BRAGG GAMING GRP |
SMA Solar and BRAGG GAMING Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SMA Solar and BRAGG GAMING
The main advantage of trading using opposite SMA Solar and BRAGG GAMING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SMA Solar 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.SMA Solar vs. CARDINAL HEALTH | SMA Solar vs. YOOMA WELLNESS INC | SMA Solar vs. ON SEMICONDUCTOR | SMA Solar vs. Siemens Healthineers AG |
BRAGG GAMING vs. Carnegie Clean Energy | BRAGG GAMING vs. SMA Solar Technology | BRAGG GAMING vs. Vishay Intertechnology | BRAGG GAMING vs. X FAB Silicon Foundries |
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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