Correlation Between Swarmio Media and Bragg Gaming
Can any of the company-specific risk be diversified away by investing in both Swarmio Media 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 Swarmio Media and Bragg Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Swarmio Media Holdings and Bragg Gaming Group, you can compare the effects of market volatilities on Swarmio Media 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 Swarmio Media with a short position of Bragg Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Swarmio Media and Bragg Gaming.
Diversification Opportunities for Swarmio Media and Bragg Gaming
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Swarmio and Bragg is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Swarmio Media Holdings 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 Swarmio Media 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 Swarmio Media Holdings 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 Swarmio Media i.e., Swarmio Media and Bragg Gaming go up and down completely randomly.
Pair Corralation between Swarmio Media and Bragg Gaming
If you would invest 0.67 in Swarmio Media Holdings on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Swarmio Media Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Swarmio Media Holdings vs. Bragg Gaming Group
Performance |
| Timeline |
| Swarmio Media Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Bragg Gaming Group |
Swarmio Media and Bragg Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Swarmio Media and Bragg Gaming
The main advantage of trading using opposite Swarmio Media and Bragg Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Swarmio Media 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.The idea behind Swarmio Media Holdings and Bragg Gaming Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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