Correlation Between Wilmington Capital and Bragg Gaming
Can any of the company-specific risk be diversified away by investing in both Wilmington Capital 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 Wilmington Capital and Bragg Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wilmington Capital Management and Bragg Gaming Group, you can compare the effects of market volatilities on Wilmington Capital 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 Wilmington Capital with a short position of Bragg Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wilmington Capital and Bragg Gaming.
Diversification Opportunities for Wilmington Capital and Bragg Gaming
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Wilmington and Bragg is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Wilmington Capital Management 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 Wilmington Capital 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 Wilmington Capital Management 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 Wilmington Capital i.e., Wilmington Capital and Bragg Gaming go up and down completely randomly.
Pair Corralation between Wilmington Capital and Bragg Gaming
Assuming the 90 days trading horizon Wilmington Capital Management is expected to generate 0.4 times more return on investment than Bragg Gaming. However, Wilmington Capital Management is 2.48 times less risky than Bragg Gaming. It trades about 0.09 of its potential returns per unit of risk. Bragg Gaming Group is currently generating about -0.15 per unit of risk. If you would invest 260.00 in Wilmington Capital Management on August 25, 2024 and sell it today you would earn a total of 21.00 from holding Wilmington Capital Management or generate 8.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wilmington Capital Management vs. Bragg Gaming Group
Performance |
| Timeline |
| Wilmington Capital |
| Bragg Gaming Group |
Wilmington Capital and Bragg Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wilmington Capital and Bragg Gaming
The main advantage of trading using opposite Wilmington Capital and Bragg Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wilmington Capital 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.| Wilmington Capital vs. CNJ Capital Investments | Wilmington Capital vs. Westshore Terminals Investment | Wilmington Capital vs. Cogeco Communications | Wilmington Capital vs. Data Communications Management |
| Bragg Gaming vs. Real Luck Group | Bragg Gaming vs. Enthusiast Gaming Holdings | Bragg Gaming vs. ESE Entertainment | Bragg Gaming vs. Braille Energy Systems |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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