Correlation Between Broadcom and Bragg Gaming

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

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

Diversification Opportunities for Broadcom and Bragg Gaming

-0.38

Correlation Coefficient

Broadcom  Bragg Gaming

Very good diversification

The 3 months correlation between Broadcom and Bragg is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Broadcom and Bragg Gaming Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bragg Gaming Group and Broadcom 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 Broadcom are associated (or correlated) with Bragg Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bragg Gaming Group has no effect on the direction of Broadcom i.e., Broadcom and Bragg Gaming go up and down completely randomly.

Pair Corralation between Broadcom and Bragg Gaming

Assuming the 90 days trading horizon Broadcom is expected to generate 0.58 times more return on investment than Bragg Gaming. However, Broadcom is 1.74 times less risky than Bragg Gaming. It trades about 0.23 of its potential returns per unit of risk. Bragg Gaming Group is currently generating about -0.18 per unit of risk. If you would invest  5,394  in Broadcom on May 21, 2025 and sell it today you would earn a total of  1,529  from holding Broadcom or generate 28.35% return on investment over 90 days.

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

Broadcom  vs.  Bragg Gaming Group

Broadcom

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Broadcom are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating technical and fundamental indicators, Broadcom exhibited solid returns over the last few months and may actually be approaching a breakup point.

Bragg Gaming Group

Risk-Adjusted Performance

Weakest

Over the last 90 days Bragg Gaming Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in September 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Broadcom and Bragg Gaming

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

The idea behind Broadcom and Bragg Gaming Group 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.