Correlation Between Bragg Gaming and Royal Bank
Can any of the company-specific risk be diversified away by investing in both Bragg Gaming and Royal Bank 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 Royal Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bragg Gaming Group and Royal Bank of, you can compare the effects of market volatilities on Bragg Gaming and Royal Bank 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 Royal Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bragg Gaming and Royal Bank.
Diversification Opportunities for Bragg Gaming and Royal Bank
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bragg and Royal is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Bragg Gaming Group and Royal Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Royal Bank 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 Group are associated (or correlated) with Royal Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Royal Bank has no effect on the direction of Bragg Gaming i.e., Bragg Gaming and Royal Bank go up and down completely randomly.
Pair Corralation between Bragg Gaming and Royal Bank
Assuming the 90 days trading horizon Bragg Gaming Group is expected to generate 9.74 times more return on investment than Royal Bank. However, Bragg Gaming is 9.74 times more volatile than Royal Bank of. It trades about 0.14 of its potential returns per unit of risk. Royal Bank of is currently generating about 0.12 per unit of risk. If you would invest 450.00 in Bragg Gaming Group on September 25, 2024 and sell it today you would earn a total of 56.00 from holding Bragg Gaming Group or generate 12.44% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Bragg Gaming Group vs. Royal Bank of
Performance |
Timeline |
Bragg Gaming Group |
Royal Bank |
Bragg Gaming and Royal Bank Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bragg Gaming and Royal Bank
The main advantage of trading using opposite Bragg Gaming and Royal Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bragg Gaming position performs unexpectedly, Royal Bank 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 Royal Bank will offset losses from the drop in Royal Bank's long position.Bragg Gaming vs. Enthusiast Gaming Holdings | Bragg Gaming vs. ESE Entertainment | Bragg Gaming vs. Braille Energy Systems | Bragg Gaming vs. iShares Canadian HYBrid |
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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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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