Correlation Between FRACTAL GAMING and TROPHY GAMES
Can any of the company-specific risk be diversified away by investing in both FRACTAL GAMING and TROPHY GAMES 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 TROPHY GAMES 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 TROPHY GAMES DEV, you can compare the effects of market volatilities on FRACTAL GAMING and TROPHY GAMES 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 TROPHY GAMES. Check out your portfolio center. Please also check ongoing floating volatility patterns of FRACTAL GAMING and TROPHY GAMES.
Diversification Opportunities for FRACTAL GAMING and TROPHY GAMES
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between FRACTAL and TROPHY is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding FRACTAL GAMING GROUP and TROPHY GAMES DEV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TROPHY GAMES DEV 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 TROPHY GAMES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TROPHY GAMES DEV has no effect on the direction of FRACTAL GAMING i.e., FRACTAL GAMING and TROPHY GAMES go up and down completely randomly.
Pair Corralation between FRACTAL GAMING and TROPHY GAMES
Assuming the 90 days horizon FRACTAL GAMING is expected to generate 9.44 times less return on investment than TROPHY GAMES. But when comparing it to its historical volatility, FRACTAL GAMING GROUP is 1.25 times less risky than TROPHY GAMES. It trades about 0.01 of its potential returns per unit of risk. TROPHY GAMES DEV is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 55.00 in TROPHY GAMES DEV on August 25, 2024 and sell it today you would earn a total of 38.00 from holding TROPHY GAMES DEV or generate 69.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FRACTAL GAMING GROUP vs. TROPHY GAMES DEV
Performance |
| Timeline |
| FRACTAL GAMING GROUP |
| TROPHY GAMES DEV |
FRACTAL GAMING and TROPHY GAMES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FRACTAL GAMING and TROPHY GAMES
The main advantage of trading using opposite FRACTAL GAMING and TROPHY GAMES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FRACTAL GAMING position performs unexpectedly, TROPHY GAMES 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 TROPHY GAMES will offset losses from the drop in TROPHY GAMES's long position.| FRACTAL GAMING vs. Treasury Wine Estates | FRACTAL GAMING vs. MOVIE GAMES SA | FRACTAL GAMING vs. Dalata Hotel Group | FRACTAL GAMING vs. NAKED WINES PLC |
| TROPHY GAMES vs. Sea Limited | TROPHY GAMES vs. NEXON Co | TROPHY GAMES vs. Take Two Interactive Software | TROPHY GAMES vs. Bilibili |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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