Correlation Between Bragg Gaming and Bilibili

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

Diversification Opportunities for Bragg Gaming and Bilibili

0.13

Correlation Coefficient

Bragg Gaming  Bilibili

Average diversification

The 3 months correlation between Bragg and Bilibili is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Bragg Gaming Group and Bilibili in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bilibili 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 Bilibili. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bilibili has no effect on the direction of Bragg Gaming i.e., Bragg Gaming and Bilibili go up and down completely randomly.

Pair Corralation between Bragg Gaming and Bilibili

Given the investment horizon of 90 days Bragg Gaming Group is expected to generate 0.77 times more return on investment than Bilibili. However, Bragg Gaming Group is 1.3 times less risky than Bilibili. It trades about 0.02 of its potential returns per unit of risk. Bilibili is currently generating about 0.0 per unit of risk. If you would invest  593.00  in Bragg Gaming Group on January 24, 2024 and sell it today you would earn a total of  11.00  from holding Bragg Gaming Group or generate 1.85% return on investment over 90 days.

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

Bragg Gaming Group  vs.  Bilibili

Bragg Gaming Group

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Bragg Gaming Group 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.

Bilibili

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Bilibili are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak essential indicators, Bilibili demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Bragg Gaming and Bilibili

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

The idea behind Bragg Gaming Group and Bilibili 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.