Correlation Between BRAGG GAMING and Burlington Stores
Can any of the company-specific risk be diversified away by investing in both BRAGG GAMING and Burlington Stores 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 Burlington Stores 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 Burlington Stores, you can compare the effects of market volatilities on BRAGG GAMING and Burlington Stores 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 Burlington Stores. Check out your portfolio center. Please also check ongoing floating volatility patterns of BRAGG GAMING and Burlington Stores.
Diversification Opportunities for BRAGG GAMING and Burlington Stores
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BRAGG and Burlington is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding BRAGG GAMING GRP and Burlington Stores in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Burlington Stores 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 Burlington Stores. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Burlington Stores has no effect on the direction of BRAGG GAMING i.e., BRAGG GAMING and Burlington Stores go up and down completely randomly.
Pair Corralation between BRAGG GAMING and Burlington Stores
Assuming the 90 days horizon BRAGG GAMING GRP is expected to generate 3.4 times more return on investment than Burlington Stores. However, BRAGG GAMING is 3.4 times more volatile than Burlington Stores. It trades about 0.23 of its potential returns per unit of risk. Burlington Stores is currently generating about -0.08 per unit of risk. If you would invest 334.00 in BRAGG GAMING GRP on October 25, 2024 and sell it today you would earn a total of 66.00 from holding BRAGG GAMING GRP or generate 19.76% 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. Burlington Stores
Performance |
| Timeline |
| BRAGG GAMING GRP |
| Burlington Stores |
BRAGG GAMING and Burlington Stores Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BRAGG GAMING and Burlington Stores
The main advantage of trading using opposite BRAGG GAMING and Burlington Stores positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BRAGG GAMING position performs unexpectedly, Burlington Stores 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 Burlington Stores will offset losses from the drop in Burlington Stores' long position.| BRAGG GAMING vs. Apollo Investment Corp | BRAGG GAMING vs. LPKF Laser Electronics | BRAGG GAMING vs. AGNC INVESTMENT | BRAGG GAMING vs. New Residential Investment |
| Burlington Stores vs. Apple Inc | Burlington Stores vs. Apple Inc | Burlington Stores vs. Apple Inc | Burlington Stores vs. Apple Inc |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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