Correlation Between NEXON and BRAGG GAMING

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

By analyzing existing cross correlation between NEXON Co and BRAGG GAMING GRP, you can compare the effects of market volatilities on NEXON 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 NEXON with a short position of BRAGG GAMING. Check out your portfolio center. Please also check ongoing floating volatility patterns of NEXON and BRAGG GAMING.

Diversification Opportunities for NEXON and BRAGG GAMING

0.12

Correlation Coefficient

NEXON  BRAGG GAMING

Average diversification

The 3 months correlation between NEXON and BRAGG is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding NEXON Co and BRAGG GAMING GRP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BRAGG GAMING GRP and NEXON 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 NEXON Co 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 GRP has no effect on the direction of NEXON i.e., NEXON and BRAGG GAMING go up and down completely randomly.

Pair Corralation between NEXON and BRAGG GAMING

Assuming the 90 days trading horizon NEXON is expected to generate 1.05 times less return on investment than BRAGG GAMING. In addition to that, NEXON is 1.11 times more volatile than BRAGG GAMING GRP. It trades about 0.13 of its total potential returns per unit of risk. BRAGG GAMING GRP is currently generating about 0.15 per unit of volatility. If you would invest  314.00  in BRAGG GAMING GRP on April 20, 2025 and sell it today you would earn a total of  78.00  from holding BRAGG GAMING GRP or generate 24.84% return on investment over 90 days.

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

NEXON Co  vs.  BRAGG GAMING GRP

NEXON

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in NEXON Co are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, NEXON unveiled solid returns over the last few months and may actually be approaching a breakup point.

BRAGG GAMING GRP

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in BRAGG GAMING GRP are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, BRAGG GAMING reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with NEXON and BRAGG GAMING

The main advantage of trading using opposite NEXON and BRAGG GAMING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NEXON 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 NEXON Co and BRAGG GAMING GRP 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.