Correlation Between SohuCom and Bragg Gaming

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

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

Diversification Opportunities for SohuCom and Bragg Gaming

0.48

Correlation Coefficient

SohuCom  Bragg Gaming

Very weak diversification

The 3 months correlation between SohuCom and Bragg is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding SohuCom 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 SohuCom 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 SohuCom 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 SohuCom i.e., SohuCom and Bragg Gaming go up and down completely randomly.

Pair Corralation between SohuCom and Bragg Gaming

Given the investment horizon of 90 days SohuCom is expected to under-perform the Bragg Gaming. In addition to that, SohuCom is 1.13 times more volatile than Bragg Gaming Group. It trades about -0.02 of its total potential returns per unit of risk. Bragg Gaming Group is currently generating about 0.14 per unit of volatility. If you would invest  365.00  in Bragg Gaming Group on March 6, 2025 and sell it today you would earn a total of  65.00  from holding Bragg Gaming Group or generate 17.81% return on investment over 90 days.

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

SohuCom  vs.  Bragg Gaming Group

SohuCom

Risk-Adjusted Performance

Very Weak

Over the last 90 days SohuCom has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's technical indicators remain comparatively stable which may send shares a bit higher in July 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Bragg Gaming Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bragg Gaming Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Bragg Gaming is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with SohuCom and Bragg Gaming

The main advantage of trading using opposite SohuCom and Bragg Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SohuCom 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 SohuCom 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.