Correlation Between SohuCom and Bragg Gaming
Can any of the company-specific risk be diversified away by investing in both SohuCom and Bragg Gaming 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 SohuCom and Bragg Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SohuCom and Bragg Gaming Group, you can compare the effects of market volatilities on SohuCom and Bragg Gaming 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 SohuCom with a short position of Bragg Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of SohuCom and Bragg Gaming.
Diversification Opportunities for SohuCom and Bragg Gaming
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between SohuCom and Bragg is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding SohuCom and Bragg Gaming Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bragg Gaming Group and SohuCom 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 SohuCom are associated (or correlated) with Bragg Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bragg Gaming Group has no effect on the direction of SohuCom i.e., SohuCom and Bragg Gaming go up and down completely randomly.
Pair Corralation between SohuCom and Bragg Gaming
Given the investment horizon of 90 days SohuCom is expected to generate 15.15 times less return on investment than Bragg Gaming. But when comparing it to its historical volatility, SohuCom is 2.62 times less risky than Bragg Gaming. It trades about 0.07 of its potential returns per unit of risk. Bragg Gaming Group is currently generating about 0.4 of returns per unit of risk over similar time horizon. If you would invest 357.00 in Bragg Gaming Group on November 8, 2024 and sell it today you would earn a total of 192.00 from holding Bragg Gaming Group or generate 53.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
SohuCom vs. Bragg Gaming Group
Performance |
| Timeline |
| SohuCom |
| Bragg Gaming Group |
SohuCom and Bragg Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SohuCom and Bragg Gaming
The main advantage of trading using opposite SohuCom and Bragg Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SohuCom position performs unexpectedly, Bragg Gaming 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 Bragg Gaming will offset losses from the drop in Bragg Gaming's long position.| SohuCom vs. Snail, Class A | SohuCom vs. Playstudios | SohuCom vs. Playtika Holding Corp | SohuCom vs. Doubledown Interactive Co |
| Bragg Gaming vs. i3 Interactive | Bragg Gaming vs. Snail, Class A | Bragg Gaming vs. Playstudios | Bragg Gaming vs. GDEV Inc |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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