Correlation Between BRAGG GAMING and COSTCO WHOLESALE
Can any of the company-specific risk be diversified away by investing in both BRAGG GAMING and COSTCO WHOLESALE 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 COSTCO WHOLESALE 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 COSTCO WHOLESALE CDR, you can compare the effects of market volatilities on BRAGG GAMING and COSTCO WHOLESALE 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 COSTCO WHOLESALE. Check out your portfolio center. Please also check ongoing floating volatility patterns of BRAGG GAMING and COSTCO WHOLESALE.
Diversification Opportunities for BRAGG GAMING and COSTCO WHOLESALE
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BRAGG and COSTCO is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding BRAGG GAMING GRP and COSTCO WHOLESALE CDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COSTCO WHOLESALE CDR 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 COSTCO WHOLESALE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COSTCO WHOLESALE CDR has no effect on the direction of BRAGG GAMING i.e., BRAGG GAMING and COSTCO WHOLESALE go up and down completely randomly.
Pair Corralation between BRAGG GAMING and COSTCO WHOLESALE
Assuming the 90 days horizon BRAGG GAMING GRP is expected to generate 3.84 times more return on investment than COSTCO WHOLESALE. However, BRAGG GAMING is 3.84 times more volatile than COSTCO WHOLESALE CDR. It trades about 0.23 of its potential returns per unit of risk. COSTCO WHOLESALE CDR is currently generating about 0.04 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. COSTCO WHOLESALE CDR
Performance |
| Timeline |
| BRAGG GAMING GRP |
| COSTCO WHOLESALE CDR |
BRAGG GAMING and COSTCO WHOLESALE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BRAGG GAMING and COSTCO WHOLESALE
The main advantage of trading using opposite BRAGG GAMING and COSTCO WHOLESALE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BRAGG GAMING position performs unexpectedly, COSTCO WHOLESALE 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 COSTCO WHOLESALE will offset losses from the drop in COSTCO WHOLESALE's 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 |
| COSTCO WHOLESALE vs. Compagnie Plastic Omnium | COSTCO WHOLESALE vs. Carnegie Clean Energy | COSTCO WHOLESALE vs. Aristocrat Leisure Limited | COSTCO WHOLESALE vs. Clean Energy Fuels |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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