Correlation Between BRAGG GAMING and OBSERVE MEDICAL
Can any of the company-specific risk be diversified away by investing in both BRAGG GAMING and OBSERVE MEDICAL 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 OBSERVE MEDICAL 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 OBSERVE MEDICAL ASA, you can compare the effects of market volatilities on BRAGG GAMING and OBSERVE MEDICAL 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 OBSERVE MEDICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of BRAGG GAMING and OBSERVE MEDICAL.
Diversification Opportunities for BRAGG GAMING and OBSERVE MEDICAL
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BRAGG and OBSERVE is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding BRAGG GAMING GRP and OBSERVE MEDICAL ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OBSERVE MEDICAL ASA 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 OBSERVE MEDICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OBSERVE MEDICAL ASA has no effect on the direction of BRAGG GAMING i.e., BRAGG GAMING and OBSERVE MEDICAL go up and down completely randomly.
Pair Corralation between BRAGG GAMING and OBSERVE MEDICAL
Assuming the 90 days horizon BRAGG GAMING GRP is expected to generate 0.71 times more return on investment than OBSERVE MEDICAL. However, BRAGG GAMING GRP is 1.42 times less risky than OBSERVE MEDICAL. It trades about -0.02 of its potential returns per unit of risk. OBSERVE MEDICAL ASA is currently generating about -0.13 per unit of risk. If you would invest 354.00 in BRAGG GAMING GRP on October 12, 2024 and sell it today you would lose (6.00) from holding BRAGG GAMING GRP or give up 1.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BRAGG GAMING GRP vs. OBSERVE MEDICAL ASA
Performance |
| Timeline |
| BRAGG GAMING GRP |
| OBSERVE MEDICAL ASA |
BRAGG GAMING and OBSERVE MEDICAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BRAGG GAMING and OBSERVE MEDICAL
The main advantage of trading using opposite BRAGG GAMING and OBSERVE MEDICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BRAGG GAMING position performs unexpectedly, OBSERVE MEDICAL 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 OBSERVE MEDICAL will offset losses from the drop in OBSERVE MEDICAL'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 |
| OBSERVE MEDICAL vs. Clean Energy Fuels | OBSERVE MEDICAL vs. Singapore Telecommunications Limited | OBSERVE MEDICAL vs. Goodyear Tire Rubber | OBSERVE MEDICAL vs. GEELY AUTOMOBILE |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| CEOs Directory Screen CEOs from public companies around the world | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |