Correlation Between Chemed and BRAGG GAMING

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

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

Diversification Opportunities for Chemed and BRAGG GAMING

-0.12

Correlation Coefficient

Chemed  BRAGG GAMING

Good diversification

The 3 months correlation between Chemed and BRAGG is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Chemed 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 Chemed 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 Chemed 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 Chemed i.e., Chemed and BRAGG GAMING go up and down completely randomly.

Pair Corralation between Chemed and BRAGG GAMING

Assuming the 90 days horizon Chemed is expected to under-perform the BRAGG GAMING. But the stock apears to be less risky and, when comparing its historical volatility, Chemed is 1.03 times less risky than BRAGG GAMING. The stock trades about -0.2 of its potential returns per unit of risk. The BRAGG GAMING GRP is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  344.00  in BRAGG GAMING GRP on April 24, 2025 and sell it today you would earn a total of  54.00  from holding BRAGG GAMING GRP or generate 15.7% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Chemed  vs.  BRAGG GAMING GRP

Chemed

Risk-Adjusted Performance

Very Weak

Over the last 90 days Chemed 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 August 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

BRAGG GAMING GRP

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in BRAGG GAMING GRP are ranked lower than 9 (%) 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 Chemed and BRAGG GAMING

The main advantage of trading using opposite Chemed and BRAGG GAMING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chemed 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 Chemed 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.