Correlation Between FRACTAL GAMING and ALBIS LEASING
Can any of the company-specific risk be diversified away by investing in both FRACTAL GAMING and ALBIS LEASING 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 ALBIS LEASING 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 ALBIS LEASING AG, you can compare the effects of market volatilities on FRACTAL GAMING and ALBIS LEASING 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 ALBIS LEASING. Check out your portfolio center. Please also check ongoing floating volatility patterns of FRACTAL GAMING and ALBIS LEASING.
Diversification Opportunities for FRACTAL GAMING and ALBIS LEASING
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FRACTAL and ALBIS is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding FRACTAL GAMING GROUP and ALBIS LEASING AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALBIS LEASING AG 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 ALBIS LEASING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALBIS LEASING AG has no effect on the direction of FRACTAL GAMING i.e., FRACTAL GAMING and ALBIS LEASING go up and down completely randomly.
Pair Corralation between FRACTAL GAMING and ALBIS LEASING
Assuming the 90 days horizon FRACTAL GAMING GROUP is expected to generate 2.55 times more return on investment than ALBIS LEASING. However, FRACTAL GAMING is 2.55 times more volatile than ALBIS LEASING AG. It trades about 0.08 of its potential returns per unit of risk. ALBIS LEASING AG is currently generating about -0.09 per unit of risk. If you would invest 293.00 in FRACTAL GAMING GROUP on November 3, 2024 and sell it today you would earn a total of 8.00 from holding FRACTAL GAMING GROUP or generate 2.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FRACTAL GAMING GROUP vs. ALBIS LEASING AG
Performance |
| Timeline |
| FRACTAL GAMING GROUP |
| ALBIS LEASING AG |
FRACTAL GAMING and ALBIS LEASING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FRACTAL GAMING and ALBIS LEASING
The main advantage of trading using opposite FRACTAL GAMING and ALBIS LEASING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FRACTAL GAMING position performs unexpectedly, ALBIS LEASING 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 ALBIS LEASING will offset losses from the drop in ALBIS LEASING's long position.| FRACTAL GAMING vs. Direct Line Insurance | FRACTAL GAMING vs. REVO INSURANCE SPA | FRACTAL GAMING vs. TRADEDOUBLER AB SK | FRACTAL GAMING vs. Synovus Financial Corp |
| ALBIS LEASING vs. SBI Insurance Group | ALBIS LEASING vs. GameStop Corp | ALBIS LEASING vs. BAKED GAMES SA | ALBIS LEASING vs. UNIQA INSURANCE GR |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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