Correlation Between Bragg Gaming and Doubledown InteractiveCo

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Bragg Gaming and Doubledown InteractiveCo 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 Doubledown InteractiveCo 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 Doubledown InteractiveCo, you can compare the effects of market volatilities on Bragg Gaming and Doubledown InteractiveCo 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 Doubledown InteractiveCo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bragg Gaming and Doubledown InteractiveCo.

Diversification Opportunities for Bragg Gaming and Doubledown InteractiveCo

0.16
  Correlation Coefficient

Average diversification

The 3 months correlation between Bragg and Doubledown is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Bragg Gaming Group and Doubledown InteractiveCo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Doubledown InteractiveCo 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 Doubledown InteractiveCo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Doubledown InteractiveCo has no effect on the direction of Bragg Gaming i.e., Bragg Gaming and Doubledown InteractiveCo go up and down completely randomly.

Pair Corralation between Bragg Gaming and Doubledown InteractiveCo

Given the investment horizon of 90 days Bragg Gaming Group is expected to generate 1.05 times more return on investment than Doubledown InteractiveCo. However, Bragg Gaming is 1.05 times more volatile than Doubledown InteractiveCo. It trades about 0.02 of its potential returns per unit of risk. Doubledown InteractiveCo is currently generating about 0.01 per unit of risk. If you would invest  590.00  in Bragg Gaming Group on December 30, 2023 and sell it today you would earn a total of  27.00  from holding Bragg Gaming Group or generate 4.58% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Bragg Gaming Group  vs.  Doubledown InteractiveCo

 Performance 
       Timeline  
Bragg Gaming Group 

Risk-Adjusted Performance

7 of 100

 
Low
 
High
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Bragg Gaming Group are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, Bragg Gaming reported solid returns over the last few months and may actually be approaching a breakup point.
Doubledown InteractiveCo 

Risk-Adjusted Performance

10 of 100

 
Low
 
High
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Doubledown InteractiveCo are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite fairly unsteady fundamental indicators, Doubledown InteractiveCo demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Bragg Gaming and Doubledown InteractiveCo Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Bragg Gaming and Doubledown InteractiveCo

The main advantage of trading using opposite Bragg Gaming and Doubledown InteractiveCo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bragg Gaming position performs unexpectedly, Doubledown InteractiveCo 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 Doubledown InteractiveCo will offset losses from the drop in Doubledown InteractiveCo's long position.
The idea behind Bragg Gaming Group and Doubledown InteractiveCo 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.

Other Complementary Tools

Volatility Analysis
Get historical volatility and risk analysis based on latest market data
ETF Categories
List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments
Stocks Directory
Find actively traded stocks across global markets
Watchlist Optimization
Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm
Commodity Channel
Use Commodity Channel Index to analyze current equity momentum
Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.
Bollinger Bands
Use Bollinger Bands indicator to analyze target price for a given investing horizon
Investing Opportunities
Build portfolios using our predefined set of ideas and optimize them against your investing preferences
USA ETFs
Find actively traded Exchange Traded Funds (ETF) in USA