Correlation Between BRAGG GAMING and Consolidated Communications
Can any of the company-specific risk be diversified away by investing in both BRAGG GAMING and Consolidated Communications 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 Consolidated Communications 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 Consolidated Communications Holdings, you can compare the effects of market volatilities on BRAGG GAMING and Consolidated Communications 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 Consolidated Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of BRAGG GAMING and Consolidated Communications.
Diversification Opportunities for BRAGG GAMING and Consolidated Communications
-0.89 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BRAGG and Consolidated is -0.89. Overlapping area represents the amount of risk that can be diversified away by holding BRAGG GAMING GRP and Consolidated Communications Ho in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Consolidated Communications 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 Consolidated Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Consolidated Communications has no effect on the direction of BRAGG GAMING i.e., BRAGG GAMING and Consolidated Communications go up and down completely randomly.
Pair Corralation between BRAGG GAMING and Consolidated Communications
Assuming the 90 days horizon BRAGG GAMING GRP is expected to generate 9.63 times more return on investment than Consolidated Communications. However, BRAGG GAMING is 9.63 times more volatile than Consolidated Communications Holdings. It trades about 0.16 of its potential returns per unit of risk. Consolidated Communications Holdings is currently generating about 0.2 per unit of risk. If you would invest 310.00 in BRAGG GAMING GRP on September 21, 2024 and sell it today you would earn a total of 42.00 from holding BRAGG GAMING GRP or generate 13.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BRAGG GAMING GRP vs. Consolidated Communications Ho
Performance |
| Timeline |
| BRAGG GAMING GRP |
| Consolidated Communications |
BRAGG GAMING and Consolidated Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BRAGG GAMING and Consolidated Communications
The main advantage of trading using opposite BRAGG GAMING and Consolidated Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BRAGG GAMING position performs unexpectedly, Consolidated Communications 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 Consolidated Communications will offset losses from the drop in Consolidated Communications' long position.| BRAGG GAMING vs. GAMING FAC SA | BRAGG GAMING vs. FUTURE GAMING GRP | BRAGG GAMING vs. PENN NATL GAMING | BRAGG GAMING vs. ANGLER GAMING PLC |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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