Correlation Between FRACTAL GAMING and WIMFARM SA
Can any of the company-specific risk be diversified away by investing in both FRACTAL GAMING and WIMFARM SA 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 WIMFARM SA 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 WIMFARM SA EO, you can compare the effects of market volatilities on FRACTAL GAMING and WIMFARM SA 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 WIMFARM SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of FRACTAL GAMING and WIMFARM SA.
Diversification Opportunities for FRACTAL GAMING and WIMFARM SA
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between FRACTAL and WIMFARM is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding FRACTAL GAMING GROUP and WIMFARM SA EO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WIMFARM SA EO 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 WIMFARM SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WIMFARM SA EO has no effect on the direction of FRACTAL GAMING i.e., FRACTAL GAMING and WIMFARM SA go up and down completely randomly.
Pair Corralation between FRACTAL GAMING and WIMFARM SA
Assuming the 90 days horizon FRACTAL GAMING GROUP is expected to generate 0.64 times more return on investment than WIMFARM SA. However, FRACTAL GAMING GROUP is 1.56 times less risky than WIMFARM SA. It trades about 0.01 of its potential returns per unit of risk. WIMFARM SA EO is currently generating about -0.02 per unit of risk. If you would invest 308.00 in FRACTAL GAMING GROUP on October 16, 2024 and sell it today you would lose (5.00) from holding FRACTAL GAMING GROUP or give up 1.62% 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. WIMFARM SA EO
Performance |
| Timeline |
| FRACTAL GAMING GROUP |
| WIMFARM SA EO |
FRACTAL GAMING and WIMFARM SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FRACTAL GAMING and WIMFARM SA
The main advantage of trading using opposite FRACTAL GAMING and WIMFARM SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FRACTAL GAMING position performs unexpectedly, WIMFARM SA 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 WIMFARM SA will offset losses from the drop in WIMFARM SA's long position.| FRACTAL GAMING vs. Eidesvik Offshore ASA | FRACTAL GAMING vs. MEDICAL FACILITIES NEW | FRACTAL GAMING vs. PT Wintermar Offshore | FRACTAL GAMING vs. China Communications Services |
| WIMFARM SA vs. GigaMedia | WIMFARM SA vs. Dave Busters Entertainment | WIMFARM SA vs. PARKEN Sport Entertainment | WIMFARM SA vs. Tencent Music Entertainment |
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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