Correlation Between BRAGG GAMING and JAPAN TOBACCO
Can any of the company-specific risk be diversified away by investing in both BRAGG GAMING and JAPAN TOBACCO 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 JAPAN TOBACCO 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 JAPAN TOBACCO UNSPADR12, you can compare the effects of market volatilities on BRAGG GAMING and JAPAN TOBACCO 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 JAPAN TOBACCO. Check out your portfolio center. Please also check ongoing floating volatility patterns of BRAGG GAMING and JAPAN TOBACCO.
Diversification Opportunities for BRAGG GAMING and JAPAN TOBACCO
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between BRAGG and JAPAN is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding BRAGG GAMING GRP and JAPAN TOBACCO UNSPADR12 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JAPAN TOBACCO UNSPADR12 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 JAPAN TOBACCO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JAPAN TOBACCO UNSPADR12 has no effect on the direction of BRAGG GAMING i.e., BRAGG GAMING and JAPAN TOBACCO go up and down completely randomly.
Pair Corralation between BRAGG GAMING and JAPAN TOBACCO
Assuming the 90 days horizon BRAGG GAMING is expected to generate 2.17 times less return on investment than JAPAN TOBACCO. In addition to that, BRAGG GAMING is 2.17 times more volatile than JAPAN TOBACCO UNSPADR12. It trades about 0.01 of its total potential returns per unit of risk. JAPAN TOBACCO UNSPADR12 is currently generating about 0.05 per unit of volatility. If you would invest 820.00 in JAPAN TOBACCO UNSPADR12 on October 11, 2024 and sell it today you would earn a total of 350.00 from holding JAPAN TOBACCO UNSPADR12 or generate 42.68% 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. JAPAN TOBACCO UNSPADR12
Performance |
| Timeline |
| BRAGG GAMING GRP |
| JAPAN TOBACCO UNSPADR12 |
BRAGG GAMING and JAPAN TOBACCO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BRAGG GAMING and JAPAN TOBACCO
The main advantage of trading using opposite BRAGG GAMING and JAPAN TOBACCO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BRAGG GAMING position performs unexpectedly, JAPAN TOBACCO 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 JAPAN TOBACCO will offset losses from the drop in JAPAN TOBACCO's long position.| BRAGG GAMING vs. Ultra Clean Holdings | BRAGG GAMING vs. Insteel Industries | BRAGG GAMING vs. Mount Gibson Iron | BRAGG GAMING vs. GALENA MINING LTD |
| JAPAN TOBACCO vs. Zoom Video Communications | JAPAN TOBACCO vs. 24SEVENOFFICE GROUP AB | JAPAN TOBACCO vs. Kingdee International Software | JAPAN TOBACCO vs. GEAR4MUSIC LS 10 |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |