Correlation Between BRAGG GAMING and Benchmark Electronics
Can any of the company-specific risk be diversified away by investing in both BRAGG GAMING and Benchmark Electronics 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 BRAGG GAMING and Benchmark Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BRAGG GAMING GRP and Benchmark Electronics, you can compare the effects of market volatilities on BRAGG GAMING and Benchmark Electronics 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 BRAGG GAMING with a short position of Benchmark Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of BRAGG GAMING and Benchmark Electronics.
Diversification Opportunities for BRAGG GAMING and Benchmark Electronics
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between BRAGG and Benchmark is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding BRAGG GAMING GRP and Benchmark Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Benchmark Electronics and BRAGG GAMING 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 BRAGG GAMING GRP are associated (or correlated) with Benchmark Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Benchmark Electronics has no effect on the direction of BRAGG GAMING i.e., BRAGG GAMING and Benchmark Electronics go up and down completely randomly.
Pair Corralation between BRAGG GAMING and Benchmark Electronics
Assuming the 90 days horizon BRAGG GAMING GRP is expected to generate 1.3 times more return on investment than Benchmark Electronics. However, BRAGG GAMING is 1.3 times more volatile than Benchmark Electronics. It trades about 0.06 of its potential returns per unit of risk. Benchmark Electronics is currently generating about 0.04 per unit of risk. If you would invest 338.00 in BRAGG GAMING GRP on April 10, 2025 and sell it today you would earn a total of 26.00 from holding BRAGG GAMING GRP or generate 7.69% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
BRAGG GAMING GRP vs. Benchmark Electronics
Performance |
Timeline |
BRAGG GAMING GRP |
Benchmark Electronics |
BRAGG GAMING and Benchmark Electronics Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with BRAGG GAMING and Benchmark Electronics
The main advantage of trading using opposite BRAGG GAMING and Benchmark Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BRAGG GAMING position performs unexpectedly, Benchmark Electronics 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 Benchmark Electronics will offset losses from the drop in Benchmark Electronics' long position.BRAGG GAMING vs. Nintendo Co | BRAGG GAMING vs. Electronic Arts | BRAGG GAMING vs. NEXON Co | BRAGG GAMING vs. Take Two Interactive Software |
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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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