Correlation Between Stampede Drilling and Bragg Gaming

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

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

Diversification Opportunities for Stampede Drilling and Bragg Gaming

0.69

Correlation Coefficient

Stampede Drilling  Bragg Gaming

Poor diversification

The 3 months correlation between Stampede and Bragg is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Stampede Drilling 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 Stampede Drilling 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 Stampede Drilling 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 Stampede Drilling i.e., Stampede Drilling and Bragg Gaming go up and down completely randomly.

Pair Corralation between Stampede Drilling and Bragg Gaming

Assuming the 90 days horizon Stampede Drilling is expected to generate 41.21 times less return on investment than Bragg Gaming. But when comparing it to its historical volatility, Stampede Drilling is 1.11 times less risky than Bragg Gaming. It trades about 0.0 of its potential returns per unit of risk. Bragg Gaming Group is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  551.00  in Bragg Gaming Group on September 12, 2024 and sell it today you would lose (23.00) from holding Bragg Gaming Group or give up 4.17% of portfolio value over 90 days.

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

Stampede Drilling  vs.  Bragg Gaming Group

Stampede Drilling

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Stampede Drilling has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Stampede Drilling is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

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. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in January 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Stampede Drilling and Bragg Gaming

The main advantage of trading using opposite Stampede Drilling and Bragg Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stampede Drilling 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 Stampede Drilling 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.