Correlation Between FRACTAL GAMING and Teradata Corp
Can any of the company-specific risk be diversified away by investing in both FRACTAL GAMING and Teradata Corp 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 FRACTAL GAMING and Teradata Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FRACTAL GAMING GROUP and Teradata Corp, you can compare the effects of market volatilities on FRACTAL GAMING and Teradata Corp 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 FRACTAL GAMING with a short position of Teradata Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of FRACTAL GAMING and Teradata Corp.
Diversification Opportunities for FRACTAL GAMING and Teradata Corp
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between FRACTAL and Teradata is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding FRACTAL GAMING GROUP and Teradata Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teradata Corp and FRACTAL 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 FRACTAL GAMING GROUP are associated (or correlated) with Teradata Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Teradata Corp has no effect on the direction of FRACTAL GAMING i.e., FRACTAL GAMING and Teradata Corp go up and down completely randomly.
Pair Corralation between FRACTAL GAMING and Teradata Corp
Assuming the 90 days horizon FRACTAL GAMING GROUP is expected to under-perform the Teradata Corp. In addition to that, FRACTAL GAMING is 1.31 times more volatile than Teradata Corp. It trades about -0.04 of its total potential returns per unit of risk. Teradata Corp is currently generating about 0.02 per unit of volatility. If you would invest 2,860 in Teradata Corp on October 19, 2024 and sell it today you would earn a total of 100.00 from holding Teradata Corp or generate 3.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FRACTAL GAMING GROUP vs. Teradata Corp
Performance |
| Timeline |
| FRACTAL GAMING GROUP |
| Teradata Corp |
FRACTAL GAMING and Teradata Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FRACTAL GAMING and Teradata Corp
The main advantage of trading using opposite FRACTAL GAMING and Teradata Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FRACTAL GAMING position performs unexpectedly, Teradata Corp 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 Teradata Corp will offset losses from the drop in Teradata Corp's long position.| FRACTAL GAMING vs. ARDAGH METAL PACDL 0001 | FRACTAL GAMING vs. Ameriprise Financial | FRACTAL GAMING vs. SBM OFFSHORE | FRACTAL GAMING vs. Virtu Financial |
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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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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