Correlation Between BRAGG GAMING and SQUIRREL MEDIA
Can any of the company-specific risk be diversified away by investing in both BRAGG GAMING and SQUIRREL MEDIA 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 BRAGG GAMING and SQUIRREL MEDIA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BRAGG GAMING GRP and SQUIRREL MEDIA SA, you can compare the effects of market volatilities on BRAGG GAMING and SQUIRREL MEDIA 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 BRAGG GAMING with a short position of SQUIRREL MEDIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of BRAGG GAMING and SQUIRREL MEDIA.
Diversification Opportunities for BRAGG GAMING and SQUIRREL MEDIA
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BRAGG and SQUIRREL is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding BRAGG GAMING GRP and SQUIRREL MEDIA SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SQUIRREL MEDIA SA and BRAGG GAMING 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 BRAGG GAMING GRP are associated (or correlated) with SQUIRREL MEDIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SQUIRREL MEDIA SA has no effect on the direction of BRAGG GAMING i.e., BRAGG GAMING and SQUIRREL MEDIA go up and down completely randomly.
Pair Corralation between BRAGG GAMING and SQUIRREL MEDIA
Assuming the 90 days horizon BRAGG GAMING GRP is expected to under-perform the SQUIRREL MEDIA. In addition to that, BRAGG GAMING is 1.05 times more volatile than SQUIRREL MEDIA SA. It trades about -0.11 of its total potential returns per unit of risk. SQUIRREL MEDIA SA is currently generating about 0.27 per unit of volatility. If you would invest 122.00 in SQUIRREL MEDIA SA on October 12, 2024 and sell it today you would earn a total of 14.00 from holding SQUIRREL MEDIA SA or generate 11.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BRAGG GAMING GRP vs. SQUIRREL MEDIA SA
Performance |
| Timeline |
| BRAGG GAMING GRP |
| SQUIRREL MEDIA SA |
BRAGG GAMING and SQUIRREL MEDIA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BRAGG GAMING and SQUIRREL MEDIA
The main advantage of trading using opposite BRAGG GAMING and SQUIRREL MEDIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BRAGG GAMING position performs unexpectedly, SQUIRREL MEDIA 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 SQUIRREL MEDIA will offset losses from the drop in SQUIRREL MEDIA's long position.| BRAGG GAMING vs. SALESFORCE INC CDR | BRAGG GAMING vs. NORTHEAST UTILITIES | BRAGG GAMING vs. MOVIE GAMES SA | BRAGG GAMING vs. MUTUIONLINE |
| SQUIRREL MEDIA vs. MOVIE GAMES SA | SQUIRREL MEDIA vs. DETALION GAMES SA | SQUIRREL MEDIA vs. SOCKET MOBILE NEW | SQUIRREL MEDIA vs. BRAGG GAMING GRP |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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