Correlation Between FRACTAL GAMING and DICKS Sporting
Can any of the company-specific risk be diversified away by investing in both FRACTAL GAMING and DICKS Sporting 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 DICKS Sporting 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 DICKS Sporting Goods, you can compare the effects of market volatilities on FRACTAL GAMING and DICKS Sporting 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 DICKS Sporting. Check out your portfolio center. Please also check ongoing floating volatility patterns of FRACTAL GAMING and DICKS Sporting.
Diversification Opportunities for FRACTAL GAMING and DICKS Sporting
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between FRACTAL and DICKS is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding FRACTAL GAMING GROUP and DICKS Sporting Goods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DICKS Sporting Goods 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 DICKS Sporting. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DICKS Sporting Goods has no effect on the direction of FRACTAL GAMING i.e., FRACTAL GAMING and DICKS Sporting go up and down completely randomly.
Pair Corralation between FRACTAL GAMING and DICKS Sporting
Assuming the 90 days horizon FRACTAL GAMING is expected to generate 1.41 times less return on investment than DICKS Sporting. In addition to that, FRACTAL GAMING is 1.15 times more volatile than DICKS Sporting Goods. It trades about 0.04 of its total potential returns per unit of risk. DICKS Sporting Goods is currently generating about 0.07 per unit of volatility. If you would invest 11,379 in DICKS Sporting Goods on November 6, 2024 and sell it today you would earn a total of 13,101 from holding DICKS Sporting Goods or generate 115.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FRACTAL GAMING GROUP vs. DICKS Sporting Goods
Performance |
| Timeline |
| FRACTAL GAMING GROUP |
| DICKS Sporting Goods |
FRACTAL GAMING and DICKS Sporting Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FRACTAL GAMING and DICKS Sporting
The main advantage of trading using opposite FRACTAL GAMING and DICKS Sporting positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FRACTAL GAMING position performs unexpectedly, DICKS Sporting 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 DICKS Sporting will offset losses from the drop in DICKS Sporting's long position.| FRACTAL GAMING vs. American Airlines Group | FRACTAL GAMING vs. MOVIE GAMES SA | FRACTAL GAMING vs. CONTAGIOUS GAMING INC | FRACTAL GAMING vs. Scientific Games |
| DICKS Sporting vs. Cal Maine Foods | DICKS Sporting vs. PREMIER FOODS | DICKS Sporting vs. Air Transport Services | DICKS Sporting vs. Axfood AB |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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