Correlation Between STMicroelectronics and BRAGG GAMING
Can any of the company-specific risk be diversified away by investing in both STMicroelectronics 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 STMicroelectronics and BRAGG GAMING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between STMicroelectronics NV and BRAGG GAMING GRP, you can compare the effects of market volatilities on STMicroelectronics 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 STMicroelectronics with a short position of BRAGG GAMING. Check out your portfolio center. Please also check ongoing floating volatility patterns of STMicroelectronics and BRAGG GAMING.
Diversification Opportunities for STMicroelectronics and BRAGG GAMING
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between STMicroelectronics and BRAGG is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding STMicroelectronics NV 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 STMicroelectronics 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 STMicroelectronics NV 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 STMicroelectronics i.e., STMicroelectronics and BRAGG GAMING go up and down completely randomly.
Pair Corralation between STMicroelectronics and BRAGG GAMING
Assuming the 90 days horizon STMicroelectronics NV is expected to generate 1.15 times more return on investment than BRAGG GAMING. However, STMicroelectronics is 1.15 times more volatile than BRAGG GAMING GRP. It trades about 0.25 of its potential returns per unit of risk. BRAGG GAMING GRP is currently generating about 0.15 per unit of risk. If you would invest 1,800 in STMicroelectronics NV on April 20, 2025 and sell it today you would earn a total of 971.00 from holding STMicroelectronics NV or generate 53.94% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
STMicroelectronics NV vs. BRAGG GAMING GRP
Performance |
Timeline |
STMicroelectronics |
BRAGG GAMING GRP |
STMicroelectronics and BRAGG GAMING Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with STMicroelectronics and BRAGG GAMING
The main advantage of trading using opposite STMicroelectronics and BRAGG GAMING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STMicroelectronics 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.STMicroelectronics vs. Strategic Education | STMicroelectronics vs. G8 EDUCATION | STMicroelectronics vs. CAREER EDUCATION | STMicroelectronics vs. Universal Electronics |
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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 Channel module to use Commodity Channel Index to analyze current equity momentum.
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