Correlation Between BRAGG GAMING and Scandinavian Tobacco
Can any of the company-specific risk be diversified away by investing in both BRAGG GAMING and Scandinavian Tobacco 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 Scandinavian Tobacco 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 Scandinavian Tobacco Group, you can compare the effects of market volatilities on BRAGG GAMING and Scandinavian Tobacco 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 Scandinavian Tobacco. Check out your portfolio center. Please also check ongoing floating volatility patterns of BRAGG GAMING and Scandinavian Tobacco.
Diversification Opportunities for BRAGG GAMING and Scandinavian Tobacco
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between BRAGG and Scandinavian is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding BRAGG GAMING GRP and Scandinavian Tobacco Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scandinavian Tobacco 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 Scandinavian Tobacco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scandinavian Tobacco has no effect on the direction of BRAGG GAMING i.e., BRAGG GAMING and Scandinavian Tobacco go up and down completely randomly.
Pair Corralation between BRAGG GAMING and Scandinavian Tobacco
Assuming the 90 days horizon BRAGG GAMING GRP is expected to generate 2.55 times more return on investment than Scandinavian Tobacco. However, BRAGG GAMING is 2.55 times more volatile than Scandinavian Tobacco Group. It trades about 0.12 of its potential returns per unit of risk. Scandinavian Tobacco Group is currently generating about -0.11 per unit of risk. If you would invest 308.00 in BRAGG GAMING GRP on September 22, 2024 and sell it today you would earn a total of 28.00 from holding BRAGG GAMING GRP or generate 9.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
BRAGG GAMING GRP vs. Scandinavian Tobacco Group
Performance |
| Timeline |
| BRAGG GAMING GRP |
| Scandinavian Tobacco |
BRAGG GAMING and Scandinavian Tobacco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BRAGG GAMING and Scandinavian Tobacco
The main advantage of trading using opposite BRAGG GAMING and Scandinavian Tobacco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BRAGG GAMING position performs unexpectedly, Scandinavian Tobacco 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 Scandinavian Tobacco will offset losses from the drop in Scandinavian Tobacco's long position.| BRAGG GAMING vs. Plastic Omnium | BRAGG GAMING vs. National Health Investors | BRAGG GAMING vs. Rayonier Advanced Materials | BRAGG GAMING vs. SANOK RUBBER ZY |
| Scandinavian Tobacco vs. BRAGG GAMING GRP | Scandinavian Tobacco vs. Evolution Mining Limited | Scandinavian Tobacco vs. Hochschild Mining plc | Scandinavian Tobacco vs. HOCHSCHILD MINING |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |