Correlation Between Corporate Travel and FRACTAL GAMING
Can any of the company-specific risk be diversified away by investing in both Corporate Travel and FRACTAL 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 Corporate Travel and FRACTAL GAMING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Corporate Travel Management and FRACTAL GAMING GROUP, you can compare the effects of market volatilities on Corporate Travel and FRACTAL 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 Corporate Travel with a short position of FRACTAL GAMING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Corporate Travel and FRACTAL GAMING.
Diversification Opportunities for Corporate Travel and FRACTAL GAMING
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Corporate and FRACTAL is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Corporate Travel Management and FRACTAL GAMING GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FRACTAL GAMING GROUP and Corporate Travel 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 Corporate Travel Management are associated (or correlated) with FRACTAL GAMING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FRACTAL GAMING GROUP has no effect on the direction of Corporate Travel i.e., Corporate Travel and FRACTAL GAMING go up and down completely randomly.
Pair Corralation between Corporate Travel and FRACTAL GAMING
Assuming the 90 days trading horizon Corporate Travel Management is expected to under-perform the FRACTAL GAMING. In addition to that, Corporate Travel is 1.07 times more volatile than FRACTAL GAMING GROUP. It trades about -0.2 of its total potential returns per unit of risk. FRACTAL GAMING GROUP is currently generating about 0.38 per unit of volatility. If you would invest 265.00 in FRACTAL GAMING GROUP on October 15, 2024 and sell it today you would earn a total of 38.00 from holding FRACTAL GAMING GROUP or generate 14.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Corporate Travel Management vs. FRACTAL GAMING GROUP
Performance |
| Timeline |
| Corporate Travel Man |
| FRACTAL GAMING GROUP |
Corporate Travel and FRACTAL GAMING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Corporate Travel and FRACTAL GAMING
The main advantage of trading using opposite Corporate Travel and FRACTAL GAMING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Corporate Travel position performs unexpectedly, FRACTAL 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 FRACTAL GAMING will offset losses from the drop in FRACTAL GAMING's long position.| Corporate Travel vs. Aluminum of | Corporate Travel vs. H2O Retailing | Corporate Travel vs. Jacquet Metal Service | Corporate Travel vs. Nippon Light Metal |
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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 CEOs Directory module to screen CEOs from public companies around the world.
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