Correlation Between Bragg Gaming and ASM International

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

By analyzing existing cross correlation between Bragg Gaming Group and ASM International NV, you can compare the effects of market volatilities on Bragg Gaming and ASM International 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 ASM International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bragg Gaming and ASM International.

Diversification Opportunities for Bragg Gaming and ASM International

0.33

Correlation Coefficient

Bragg Gaming  ASM International

Weak diversification

The 3 months correlation between Bragg and ASM is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Bragg Gaming Group and ASM International NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASM International 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 Group are associated (or correlated) with ASM International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASM International has no effect on the direction of Bragg Gaming i.e., Bragg Gaming and ASM International go up and down completely randomly.

Pair Corralation between Bragg Gaming and ASM International

Assuming the 90 days trading horizon Bragg Gaming Group is expected to generate 0.84 times more return on investment than ASM International. However, Bragg Gaming Group is 1.19 times less risky than ASM International. It trades about 0.21 of its potential returns per unit of risk. ASM International NV is currently generating about -0.05 per unit of risk. If you would invest  720.00  in Bragg Gaming Group on January 26, 2024 and sell it today you would earn a total of  127.00  from holding Bragg Gaming Group or generate 17.64% 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 Group  vs.  ASM International NV

Bragg Gaming Group

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Bragg Gaming Group are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very abnormal basic indicators, Bragg Gaming displayed solid returns over the last few months and may actually be approaching a breakup point.

ASM International

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in ASM International NV are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, ASM International is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Bragg Gaming and ASM International

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

The idea behind Bragg Gaming Group and ASM International NV 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.

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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.