Correlation Between GameSquare Holdings and Bragg Gaming

Can any of the company-specific risk be diversified away by investing in both GameSquare Holdings 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 GameSquare Holdings and Bragg Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between GameSquare Holdings and Bragg Gaming Group, you can compare the effects of market volatilities on GameSquare Holdings 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 GameSquare Holdings with a short position of Bragg Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of GameSquare Holdings and Bragg Gaming.

Diversification Opportunities for GameSquare Holdings and Bragg Gaming

-0.39

Correlation Coefficient

GameSquare Holdings  Bragg Gaming

Very good diversification

The 3 months correlation between GameSquare and Bragg is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding GameSquare 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 GameSquare Holdings 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 GameSquare 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 GameSquare Holdings i.e., GameSquare Holdings and Bragg Gaming go up and down completely randomly.

Pair Corralation between GameSquare Holdings and Bragg Gaming

Given the investment horizon of 90 days GameSquare Holdings is expected to under-perform the Bragg Gaming. In addition to that, GameSquare Holdings is 1.9 times more volatile than Bragg Gaming Group. It trades about -0.02 of its total potential returns per unit of risk. Bragg Gaming Group is currently generating about 0.01 per unit of volatility. If you would invest  427.00  in Bragg Gaming Group on September 12, 2024 and sell it today you would lose (52.00) from holding Bragg Gaming Group or give up 12.18% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

GameSquare Holdings  vs.  Bragg Gaming Group

GameSquare Holdings

Risk-Adjusted Performance

2 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in GameSquare Holdings are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather inconsistent primary indicators, GameSquare Holdings exhibited solid returns over the last few months and may actually be approaching a breakup point.

Bragg Gaming Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Bragg Gaming Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with GameSquare Holdings and Bragg Gaming

The main advantage of trading using opposite GameSquare Holdings and Bragg Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GameSquare Holdings 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 GameSquare 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.

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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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .