Correlation Between FRACTAL GAMING and PARKEN Sport
Can any of the company-specific risk be diversified away by investing in both FRACTAL GAMING and PARKEN Sport 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 PARKEN Sport 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 PARKEN Sport Entertainment, you can compare the effects of market volatilities on FRACTAL GAMING and PARKEN Sport 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 PARKEN Sport. Check out your portfolio center. Please also check ongoing floating volatility patterns of FRACTAL GAMING and PARKEN Sport.
Diversification Opportunities for FRACTAL GAMING and PARKEN Sport
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FRACTAL and PARKEN is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding FRACTAL GAMING GROUP and PARKEN Sport Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PARKEN Sport Enterta 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 PARKEN Sport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PARKEN Sport Enterta has no effect on the direction of FRACTAL GAMING i.e., FRACTAL GAMING and PARKEN Sport go up and down completely randomly.
Pair Corralation between FRACTAL GAMING and PARKEN Sport
Assuming the 90 days horizon FRACTAL GAMING GROUP is expected to under-perform the PARKEN Sport. But the stock apears to be less risky and, when comparing its historical volatility, FRACTAL GAMING GROUP is 1.17 times less risky than PARKEN Sport. The stock trades about -0.22 of its potential returns per unit of risk. The PARKEN Sport Entertainment is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 1,610 in PARKEN Sport Entertainment on September 4, 2024 and sell it today you would lose (15.00) from holding PARKEN Sport Entertainment or give up 0.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
FRACTAL GAMING GROUP vs. PARKEN Sport Entertainment
Performance |
| Timeline |
| FRACTAL GAMING GROUP |
| PARKEN Sport Enterta |
FRACTAL GAMING and PARKEN Sport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FRACTAL GAMING and PARKEN Sport
The main advantage of trading using opposite FRACTAL GAMING and PARKEN Sport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FRACTAL GAMING position performs unexpectedly, PARKEN Sport 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 PARKEN Sport will offset losses from the drop in PARKEN Sport's long position.| FRACTAL GAMING vs. HP Inc | FRACTAL GAMING vs. Dell Technologies | FRACTAL GAMING vs. Western Digital | FRACTAL GAMING vs. SEIKO EPSON PADR |
| PARKEN Sport vs. LIFEWAY FOODS | PARKEN Sport vs. AUST AGRICULTURAL | PARKEN Sport vs. Lifeway Foods | PARKEN Sport vs. TYSON FOODS A |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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