Correlation Between John Wiley and Bragg Gaming
Can any of the company-specific risk be diversified away by investing in both John Wiley 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 John Wiley and Bragg Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between John Wiley Sons and Bragg Gaming Group, you can compare the effects of market volatilities on John Wiley 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 John Wiley with a short position of Bragg Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Wiley and Bragg Gaming.
Diversification Opportunities for John Wiley and Bragg Gaming
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between John and Bragg is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding John Wiley Sons 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 John Wiley 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 John Wiley Sons 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 John Wiley i.e., John Wiley and Bragg Gaming go up and down completely randomly.
Pair Corralation between John Wiley and Bragg Gaming
Given the investment horizon of 90 days John Wiley Sons is expected to generate 25.16 times more return on investment than Bragg Gaming. However, John Wiley is 25.16 times more volatile than Bragg Gaming Group. It trades about 0.08 of its potential returns per unit of risk. Bragg Gaming Group is currently generating about 0.01 per unit of risk. If you would invest 3,873 in John Wiley Sons on August 31, 2024 and sell it today you would earn a total of 1,417 from holding John Wiley Sons or generate 36.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 81.21% |
| Values | Daily Returns |
John Wiley Sons vs. Bragg Gaming Group
Performance |
| Timeline |
| John Wiley Sons |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| Bragg Gaming Group |
John Wiley and Bragg Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Wiley and Bragg Gaming
The main advantage of trading using opposite John Wiley and Bragg Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Wiley 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 John Wiley Sons 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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