Correlation Between BRAGG GAMING and Align Technology
Can any of the company-specific risk be diversified away by investing in both BRAGG GAMING and Align Technology 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 Align Technology 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 Align Technology, you can compare the effects of market volatilities on BRAGG GAMING and Align Technology 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 Align Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of BRAGG GAMING and Align Technology.
Diversification Opportunities for BRAGG GAMING and Align Technology
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BRAGG and Align is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding BRAGG GAMING GRP and Align Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Align Technology 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 Align Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Align Technology has no effect on the direction of BRAGG GAMING i.e., BRAGG GAMING and Align Technology go up and down completely randomly.
Pair Corralation between BRAGG GAMING and Align Technology
Assuming the 90 days horizon BRAGG GAMING GRP is expected to generate 3.04 times more return on investment than Align Technology. However, BRAGG GAMING is 3.04 times more volatile than Align Technology. It trades about 0.22 of its potential returns per unit of risk. Align Technology is currently generating about 0.34 per unit of risk. If you would invest 334.00 in BRAGG GAMING GRP on October 26, 2024 and sell it today you would earn a total of 64.00 from holding BRAGG GAMING GRP or generate 19.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BRAGG GAMING GRP vs. Align Technology
Performance |
| Timeline |
| BRAGG GAMING GRP |
| Align Technology |
BRAGG GAMING and Align Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BRAGG GAMING and Align Technology
The main advantage of trading using opposite BRAGG GAMING and Align Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BRAGG GAMING position performs unexpectedly, Align Technology 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 Align Technology will offset losses from the drop in Align Technology's long position.| BRAGG GAMING vs. De Grey Mining | BRAGG GAMING vs. ARDAGH METAL PACDL 0001 | BRAGG GAMING vs. Perseus Mining Limited | BRAGG GAMING vs. ADRIATIC METALS LS 013355 |
| Align Technology vs. Abbott Laboratories | Align Technology vs. Abbott Laboratories | Align Technology vs. Medtronic PLC | Align Technology vs. Stryker |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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