Correlation Between BRAGG GAMING and CSL
Can any of the company-specific risk be diversified away by investing in both BRAGG GAMING and CSL 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 CSL 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 CSL LTD SPONADR, you can compare the effects of market volatilities on BRAGG GAMING and CSL 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 CSL. Check out your portfolio center. Please also check ongoing floating volatility patterns of BRAGG GAMING and CSL.
Diversification Opportunities for BRAGG GAMING and CSL
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BRAGG and CSL is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding BRAGG GAMING GRP and CSL LTD SPONADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSL LTD SPONADR 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 CSL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSL LTD SPONADR has no effect on the direction of BRAGG GAMING i.e., BRAGG GAMING and CSL go up and down completely randomly.
Pair Corralation between BRAGG GAMING and CSL
Assuming the 90 days horizon BRAGG GAMING GRP is expected to generate 2.43 times more return on investment than CSL. However, BRAGG GAMING is 2.43 times more volatile than CSL LTD SPONADR. It trades about 0.01 of its potential returns per unit of risk. CSL LTD SPONADR is currently generating about -0.01 per unit of risk. If you would invest 381.00 in BRAGG GAMING GRP on October 15, 2024 and sell it today you would lose (41.00) from holding BRAGG GAMING GRP or give up 10.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BRAGG GAMING GRP vs. CSL LTD SPONADR
Performance |
| Timeline |
| BRAGG GAMING GRP |
| CSL LTD SPONADR |
BRAGG GAMING and CSL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BRAGG GAMING and CSL
The main advantage of trading using opposite BRAGG GAMING and CSL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BRAGG GAMING position performs unexpectedly, CSL 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 CSL will offset losses from the drop in CSL's long position.| BRAGG GAMING vs. TEXAS ROADHOUSE | BRAGG GAMING vs. Wayside Technology Group | BRAGG GAMING vs. TITANIUM TRANSPORTGROUP | BRAGG GAMING vs. Texas Roadhouse |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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