Correlation Between BRAGG GAMING and Plastic Omnium
Can any of the company-specific risk be diversified away by investing in both BRAGG GAMING and Plastic Omnium 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 Plastic Omnium 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 Plastic Omnium, you can compare the effects of market volatilities on BRAGG GAMING and Plastic Omnium 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 Plastic Omnium. Check out your portfolio center. Please also check ongoing floating volatility patterns of BRAGG GAMING and Plastic Omnium.
Diversification Opportunities for BRAGG GAMING and Plastic Omnium
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between BRAGG and Plastic is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding BRAGG GAMING GRP and Plastic Omnium in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Plastic Omnium 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 Plastic Omnium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Plastic Omnium has no effect on the direction of BRAGG GAMING i.e., BRAGG GAMING and Plastic Omnium go up and down completely randomly.
Pair Corralation between BRAGG GAMING and Plastic Omnium
Assuming the 90 days horizon BRAGG GAMING is expected to generate 2.12 times less return on investment than Plastic Omnium. In addition to that, BRAGG GAMING is 1.83 times more volatile than Plastic Omnium. It trades about 0.12 of its total potential returns per unit of risk. Plastic Omnium is currently generating about 0.45 per unit of volatility. If you would invest 789.00 in Plastic Omnium on September 22, 2024 and sell it today you would earn a total of 188.00 from holding Plastic Omnium or generate 23.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BRAGG GAMING GRP vs. Plastic Omnium
Performance |
| Timeline |
| BRAGG GAMING GRP |
| Plastic Omnium |
BRAGG GAMING and Plastic Omnium Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BRAGG GAMING and Plastic Omnium
The main advantage of trading using opposite BRAGG GAMING and Plastic Omnium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BRAGG GAMING position performs unexpectedly, Plastic Omnium 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 Plastic Omnium will offset losses from the drop in Plastic Omnium's long position.| BRAGG GAMING vs. Plastic Omnium | BRAGG GAMING vs. National Health Investors | BRAGG GAMING vs. Rayonier Advanced Materials | BRAGG GAMING vs. SANOK RUBBER ZY |
| Plastic Omnium vs. OAKTRSPECLENDNEW | Plastic Omnium vs. Webster Financial | Plastic Omnium vs. REVO INSURANCE SPA | Plastic Omnium vs. Magnachip Semiconductor |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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