Correlation Between BRAGG GAMING and Orsted AS
Can any of the company-specific risk be diversified away by investing in both BRAGG GAMING and Orsted AS 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 Orsted AS 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 Orsted AS, you can compare the effects of market volatilities on BRAGG GAMING and Orsted AS 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 Orsted AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of BRAGG GAMING and Orsted AS.
Diversification Opportunities for BRAGG GAMING and Orsted AS
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BRAGG and Orsted is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding BRAGG GAMING GRP and Orsted AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Orsted AS 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 Orsted AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Orsted AS has no effect on the direction of BRAGG GAMING i.e., BRAGG GAMING and Orsted AS go up and down completely randomly.
Pair Corralation between BRAGG GAMING and Orsted AS
Assuming the 90 days horizon BRAGG GAMING GRP is expected to generate 1.17 times more return on investment than Orsted AS. However, BRAGG GAMING is 1.17 times more volatile than Orsted AS. It trades about 0.0 of its potential returns per unit of risk. Orsted AS is currently generating about -0.36 per unit of risk. If you would invest 342.00 in BRAGG GAMING GRP on October 16, 2024 and sell it today you would lose (2.00) from holding BRAGG GAMING GRP or give up 0.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 94.12% |
| Values | Daily Returns |
BRAGG GAMING GRP vs. Orsted AS
Performance |
| Timeline |
| BRAGG GAMING GRP |
| Orsted AS |
BRAGG GAMING and Orsted AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BRAGG GAMING and Orsted AS
The main advantage of trading using opposite BRAGG GAMING and Orsted AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BRAGG GAMING position performs unexpectedly, Orsted AS 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 Orsted AS will offset losses from the drop in Orsted AS's long position.| BRAGG GAMING vs. Tencent Music Entertainment | BRAGG GAMING vs. NAKED WINES PLC | BRAGG GAMING vs. TRI CHEMICAL LABORATINC | BRAGG GAMING vs. ITALIAN WINE BRANDS |
| Orsted AS vs. Hochschild Mining plc | Orsted AS vs. BRAGG GAMING GRP | Orsted AS vs. MOVIE GAMES SA | Orsted AS vs. Corporate Office Properties |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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