Correlation Between FRACTAL GAMING and ADDUS HOMECARE
Can any of the company-specific risk be diversified away by investing in both FRACTAL GAMING and ADDUS HOMECARE 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 ADDUS HOMECARE 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 ADDUS HOMECARE, you can compare the effects of market volatilities on FRACTAL GAMING and ADDUS HOMECARE 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 ADDUS HOMECARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of FRACTAL GAMING and ADDUS HOMECARE.
Diversification Opportunities for FRACTAL GAMING and ADDUS HOMECARE
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between FRACTAL and ADDUS is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding FRACTAL GAMING GROUP and ADDUS HOMECARE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ADDUS HOMECARE 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 ADDUS HOMECARE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ADDUS HOMECARE has no effect on the direction of FRACTAL GAMING i.e., FRACTAL GAMING and ADDUS HOMECARE go up and down completely randomly.
Pair Corralation between FRACTAL GAMING and ADDUS HOMECARE
Assuming the 90 days horizon FRACTAL GAMING GROUP is expected to generate 1.84 times more return on investment than ADDUS HOMECARE. However, FRACTAL GAMING is 1.84 times more volatile than ADDUS HOMECARE. It trades about 0.25 of its potential returns per unit of risk. ADDUS HOMECARE is currently generating about 0.14 per unit of risk. If you would invest 263.00 in FRACTAL GAMING GROUP on October 25, 2024 and sell it today you would earn a total of 28.00 from holding FRACTAL GAMING GROUP or generate 10.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FRACTAL GAMING GROUP vs. ADDUS HOMECARE
Performance |
| Timeline |
| FRACTAL GAMING GROUP |
| ADDUS HOMECARE |
FRACTAL GAMING and ADDUS HOMECARE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FRACTAL GAMING and ADDUS HOMECARE
The main advantage of trading using opposite FRACTAL GAMING and ADDUS HOMECARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FRACTAL GAMING position performs unexpectedly, ADDUS HOMECARE 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 ADDUS HOMECARE will offset losses from the drop in ADDUS HOMECARE's long position.| FRACTAL GAMING vs. ZINC MEDIA GR | FRACTAL GAMING vs. Townsquare Media | FRACTAL GAMING vs. PROSIEBENSAT1 MEDIADR4 | FRACTAL GAMING vs. GigaMedia |
| ADDUS HOMECARE vs. Check Point Software | ADDUS HOMECARE vs. CANON MARKETING JP | ADDUS HOMECARE vs. UNIVMUSIC GRPADR050 | ADDUS HOMECARE vs. MARKET VECTR RETAIL |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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