Correlation Between BRAGG GAMING and Vulcan Materials

Can any of the company-specific risk be diversified away by investing in both BRAGG GAMING and Vulcan Materials 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 Vulcan Materials 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 Vulcan Materials, you can compare the effects of market volatilities on BRAGG GAMING and Vulcan Materials 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 Vulcan Materials. Check out your portfolio center. Please also check ongoing floating volatility patterns of BRAGG GAMING and Vulcan Materials.

Diversification Opportunities for BRAGG GAMING and Vulcan Materials

0.71

Correlation Coefficient

BRAGG GAMING  Vulcan Materials

Poor diversification

The 3 months correlation between BRAGG and Vulcan is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding BRAGG GAMING GRP and Vulcan Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vulcan Materials 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 Vulcan Materials. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vulcan Materials has no effect on the direction of BRAGG GAMING i.e., BRAGG GAMING and Vulcan Materials go up and down completely randomly.

Pair Corralation between BRAGG GAMING and Vulcan Materials

Assuming the 90 days horizon BRAGG GAMING GRP is expected to generate 1.51 times more return on investment than Vulcan Materials. However, BRAGG GAMING is 1.51 times more volatile than Vulcan Materials. It trades about 0.15 of its potential returns per unit of risk. Vulcan Materials is currently generating about 0.09 per unit of risk. If you would invest  314.00  in BRAGG GAMING GRP on April 22, 2025 and sell it today you would earn a total of  76.00  from holding BRAGG GAMING GRP or generate 24.2% return on investment over 90 days.

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

BRAGG GAMING GRP  vs.  Vulcan Materials

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 fragile basic indicators, BRAGG GAMING reported solid returns over the last few months and may actually be approaching a breakup point.

Vulcan Materials

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Vulcan Materials are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Vulcan Materials may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with BRAGG GAMING and Vulcan Materials

The main advantage of trading using opposite BRAGG GAMING and Vulcan Materials positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BRAGG GAMING position performs unexpectedly, Vulcan Materials 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 Vulcan Materials will offset losses from the drop in Vulcan Materials' long position.

The idea behind BRAGG GAMING GRP and Vulcan Materials 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.