Correlation Between FRACTAL GAMING and Air Lease
Can any of the company-specific risk be diversified away by investing in both FRACTAL GAMING and Air Lease 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 Air Lease 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 Air Lease, you can compare the effects of market volatilities on FRACTAL GAMING and Air Lease 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 Air Lease. Check out your portfolio center. Please also check ongoing floating volatility patterns of FRACTAL GAMING and Air Lease.
Diversification Opportunities for FRACTAL GAMING and Air Lease
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between FRACTAL and Air is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding FRACTAL GAMING GROUP and Air Lease in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air Lease 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 Air Lease. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Air Lease has no effect on the direction of FRACTAL GAMING i.e., FRACTAL GAMING and Air Lease go up and down completely randomly.
Pair Corralation between FRACTAL GAMING and Air Lease
Assuming the 90 days horizon FRACTAL GAMING GROUP is expected to generate 1.19 times more return on investment than Air Lease. However, FRACTAL GAMING is 1.19 times more volatile than Air Lease. It trades about 0.08 of its potential returns per unit of risk. Air Lease is currently generating about -0.13 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FRACTAL GAMING GROUP vs. Air Lease
Performance |
| Timeline |
| FRACTAL GAMING GROUP |
| Air Lease |
FRACTAL GAMING and Air Lease Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FRACTAL GAMING and Air Lease
The main advantage of trading using opposite FRACTAL GAMING and Air Lease positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FRACTAL GAMING position performs unexpectedly, Air Lease 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 Air Lease will offset losses from the drop in Air Lease'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 |
| Air Lease vs. Acadia Healthcare | Air Lease vs. EPSILON HEALTHCARE LTD | Air Lease vs. Universal Health Realty | Air Lease vs. Ares Management Corp |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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