Correlation Between 24SevenOffice Scandinavia and Fractal Gaming
Can any of the company-specific risk be diversified away by investing in both 24SevenOffice Scandinavia 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 24SevenOffice Scandinavia and Fractal Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 24SevenOffice Scandinavia AB and Fractal Gaming Group, you can compare the effects of market volatilities on 24SevenOffice Scandinavia 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 24SevenOffice Scandinavia with a short position of Fractal Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of 24SevenOffice Scandinavia and Fractal Gaming.
Diversification Opportunities for 24SevenOffice Scandinavia and Fractal Gaming
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 24SevenOffice and Fractal is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding 24SevenOffice Scandinavia AB 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 24SevenOffice Scandinavia 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 24SevenOffice Scandinavia AB 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 24SevenOffice Scandinavia i.e., 24SevenOffice Scandinavia and Fractal Gaming go up and down completely randomly.
Pair Corralation between 24SevenOffice Scandinavia and Fractal Gaming
Assuming the 90 days trading horizon 24SevenOffice Scandinavia AB is expected to generate 3.48 times more return on investment than Fractal Gaming. However, 24SevenOffice Scandinavia is 3.48 times more volatile than Fractal Gaming Group. It trades about 0.12 of its potential returns per unit of risk. Fractal Gaming Group is currently generating about -0.16 per unit of risk. If you would invest 1,920 in 24SevenOffice Scandinavia AB on September 3, 2024 and sell it today you would earn a total of 420.00 from holding 24SevenOffice Scandinavia AB or generate 21.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
24SevenOffice Scandinavia AB vs. Fractal Gaming Group
Performance |
| Timeline |
| 24SevenOffice Scandinavia |
| Fractal Gaming Group |
24SevenOffice Scandinavia and Fractal Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 24SevenOffice Scandinavia and Fractal Gaming
The main advantage of trading using opposite 24SevenOffice Scandinavia and Fractal Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 24SevenOffice Scandinavia 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.| 24SevenOffice Scandinavia vs. Viva Wine Group | 24SevenOffice Scandinavia vs. Nexam Chemical Holding | 24SevenOffice Scandinavia vs. Fractal Gaming Group | 24SevenOffice Scandinavia vs. White Pearl Technology |
| Fractal Gaming vs. Media and Games | Fractal Gaming vs. Cint Group AB | Fractal Gaming vs. Thunderful Group AB | Fractal Gaming vs. Enad Global 7 |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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