Correlation Between FRACTAL GAMING and INTER CARS
Can any of the company-specific risk be diversified away by investing in both FRACTAL GAMING and INTER CARS 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 INTER CARS 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 INTER CARS SA, you can compare the effects of market volatilities on FRACTAL GAMING and INTER CARS 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 INTER CARS. Check out your portfolio center. Please also check ongoing floating volatility patterns of FRACTAL GAMING and INTER CARS.
Diversification Opportunities for FRACTAL GAMING and INTER CARS
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between FRACTAL and INTER is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding FRACTAL GAMING GROUP and INTER CARS SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTER CARS SA 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 INTER CARS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INTER CARS SA has no effect on the direction of FRACTAL GAMING i.e., FRACTAL GAMING and INTER CARS go up and down completely randomly.
Pair Corralation between FRACTAL GAMING and INTER CARS
Assuming the 90 days horizon FRACTAL GAMING GROUP is expected to generate 1.4 times more return on investment than INTER CARS. However, FRACTAL GAMING is 1.4 times more volatile than INTER CARS SA. It trades about 0.04 of its potential returns per unit of risk. INTER CARS SA is currently generating about 0.03 per unit of risk. If you would invest 192.00 in FRACTAL GAMING GROUP on September 3, 2024 and sell it today you would earn a total of 79.00 from holding FRACTAL GAMING GROUP or generate 41.15% 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. INTER CARS SA
Performance |
| Timeline |
| FRACTAL GAMING GROUP |
| INTER CARS SA |
FRACTAL GAMING and INTER CARS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FRACTAL GAMING and INTER CARS
The main advantage of trading using opposite FRACTAL GAMING and INTER CARS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FRACTAL GAMING position performs unexpectedly, INTER CARS 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 INTER CARS will offset losses from the drop in INTER CARS's long position.| FRACTAL GAMING vs. H FARM SPA | FRACTAL GAMING vs. STORE ELECTRONIC | FRACTAL GAMING vs. ELECTRONIC ARTS | FRACTAL GAMING vs. DAIRY FARM INTL |
| INTER CARS vs. MOVIE GAMES SA | INTER CARS vs. FRACTAL GAMING GROUP | INTER CARS vs. Constellation Software | INTER CARS vs. Alfa Financial Software |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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