Correlation Between BRAGG GAMING and ASPEN TECHINC
Can any of the company-specific risk be diversified away by investing in both BRAGG GAMING and ASPEN TECHINC 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 ASPEN TECHINC 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 ASPEN TECHINC DL, you can compare the effects of market volatilities on BRAGG GAMING and ASPEN TECHINC 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 ASPEN TECHINC. Check out your portfolio center. Please also check ongoing floating volatility patterns of BRAGG GAMING and ASPEN TECHINC.
Diversification Opportunities for BRAGG GAMING and ASPEN TECHINC
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between BRAGG and ASPEN is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding BRAGG GAMING GRP and ASPEN TECHINC DL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASPEN TECHINC DL 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 ASPEN TECHINC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASPEN TECHINC DL has no effect on the direction of BRAGG GAMING i.e., BRAGG GAMING and ASPEN TECHINC go up and down completely randomly.
Pair Corralation between BRAGG GAMING and ASPEN TECHINC
Assuming the 90 days horizon BRAGG GAMING GRP is expected to generate 4.92 times more return on investment than ASPEN TECHINC. However, BRAGG GAMING is 4.92 times more volatile than ASPEN TECHINC DL. It trades about 0.03 of its potential returns per unit of risk. ASPEN TECHINC DL is currently generating about 0.05 per unit of risk. If you would invest 398.00 in BRAGG GAMING GRP on December 12, 2024 and sell it today you would earn a total of 4.00 from holding BRAGG GAMING GRP or generate 1.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
BRAGG GAMING GRP vs. ASPEN TECHINC DL
Performance |
| Timeline |
| BRAGG GAMING GRP |
| ASPEN TECHINC DL |
BRAGG GAMING and ASPEN TECHINC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BRAGG GAMING and ASPEN TECHINC
The main advantage of trading using opposite BRAGG GAMING and ASPEN TECHINC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BRAGG GAMING position performs unexpectedly, ASPEN TECHINC 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 ASPEN TECHINC will offset losses from the drop in ASPEN TECHINC's long position.| BRAGG GAMING vs. GUILD ESPORTS PLC | ||
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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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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