Correlation Between FRACTAL GAMING and CapitaLand Investment
Can any of the company-specific risk be diversified away by investing in both FRACTAL GAMING and CapitaLand Investment 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 CapitaLand Investment 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 CapitaLand Investment Limited, you can compare the effects of market volatilities on FRACTAL GAMING and CapitaLand Investment 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 CapitaLand Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of FRACTAL GAMING and CapitaLand Investment.
Diversification Opportunities for FRACTAL GAMING and CapitaLand Investment
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between FRACTAL and CapitaLand is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding FRACTAL GAMING GROUP and CapitaLand Investment Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CapitaLand Investment 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 CapitaLand Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CapitaLand Investment has no effect on the direction of FRACTAL GAMING i.e., FRACTAL GAMING and CapitaLand Investment go up and down completely randomly.
Pair Corralation between FRACTAL GAMING and CapitaLand Investment
Assuming the 90 days horizon FRACTAL GAMING GROUP is expected to under-perform the CapitaLand Investment. But the stock apears to be less risky and, when comparing its historical volatility, FRACTAL GAMING GROUP is 1.05 times less risky than CapitaLand Investment. The stock trades about -0.26 of its potential returns per unit of risk. The CapitaLand Investment Limited is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 192.00 in CapitaLand Investment Limited on September 1, 2024 and sell it today you would lose (3.00) from holding CapitaLand Investment Limited or give up 1.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FRACTAL GAMING GROUP vs. CapitaLand Investment Limited
Performance |
| Timeline |
| FRACTAL GAMING GROUP |
| CapitaLand Investment |
FRACTAL GAMING and CapitaLand Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FRACTAL GAMING and CapitaLand Investment
The main advantage of trading using opposite FRACTAL GAMING and CapitaLand Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FRACTAL GAMING position performs unexpectedly, CapitaLand Investment 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 CapitaLand Investment will offset losses from the drop in CapitaLand Investment's long position.| FRACTAL GAMING vs. Avanos Medical | FRACTAL GAMING vs. ONWARD MEDICAL BV | FRACTAL GAMING vs. IMAGIN MEDICAL INC | FRACTAL GAMING vs. EAT WELL INVESTMENT |
| CapitaLand Investment vs. CBRE Group Class | CapitaLand Investment vs. Superior Plus Corp | CapitaLand Investment vs. NMI Holdings | CapitaLand Investment vs. Origin Agritech |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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