Correlation Between FRACTAL GAMING and CANON MARKETING
Can any of the company-specific risk be diversified away by investing in both FRACTAL GAMING and CANON MARKETING 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 CANON MARKETING 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 CANON MARKETING JP, you can compare the effects of market volatilities on FRACTAL GAMING and CANON MARKETING 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 CANON MARKETING. Check out your portfolio center. Please also check ongoing floating volatility patterns of FRACTAL GAMING and CANON MARKETING.
Diversification Opportunities for FRACTAL GAMING and CANON MARKETING
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FRACTAL and CANON is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding FRACTAL GAMING GROUP and CANON MARKETING JP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CANON MARKETING JP 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 CANON MARKETING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CANON MARKETING JP has no effect on the direction of FRACTAL GAMING i.e., FRACTAL GAMING and CANON MARKETING go up and down completely randomly.
Pair Corralation between FRACTAL GAMING and CANON MARKETING
Assuming the 90 days horizon FRACTAL GAMING GROUP is expected to under-perform the CANON MARKETING. In addition to that, FRACTAL GAMING is 1.57 times more volatile than CANON MARKETING JP. It trades about -0.02 of its total potential returns per unit of risk. CANON MARKETING JP is currently generating about 0.13 per unit of volatility. If you would invest 2,520 in CANON MARKETING JP on November 3, 2024 and sell it today you would earn a total of 660.00 from holding CANON MARKETING JP or generate 26.19% 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. CANON MARKETING JP
Performance |
| Timeline |
| FRACTAL GAMING GROUP |
| CANON MARKETING JP |
FRACTAL GAMING and CANON MARKETING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FRACTAL GAMING and CANON MARKETING
The main advantage of trading using opposite FRACTAL GAMING and CANON MARKETING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FRACTAL GAMING position performs unexpectedly, CANON MARKETING 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 CANON MARKETING will offset losses from the drop in CANON MARKETING's long position.| FRACTAL GAMING vs. Aedas Homes SA | FRACTAL GAMING vs. Melco Resorts Entertainment | FRACTAL GAMING vs. HAVERTY FURNITURE A | FRACTAL GAMING vs. Fuji Media Holdings |
| CANON MARKETING vs. Goosehead Insurance | CANON MARKETING vs. Vienna Insurance Group | CANON MARKETING vs. HAVERTY FURNITURE A | CANON MARKETING vs. OFFICE DEPOT |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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