Correlation Between FRACTAL GAMING and DAIMLER TRUCK
Can any of the company-specific risk be diversified away by investing in both FRACTAL GAMING and DAIMLER TRUCK 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 DAIMLER TRUCK 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 DAIMLER TRUCK SPADS12, you can compare the effects of market volatilities on FRACTAL GAMING and DAIMLER TRUCK 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 DAIMLER TRUCK. Check out your portfolio center. Please also check ongoing floating volatility patterns of FRACTAL GAMING and DAIMLER TRUCK.
Diversification Opportunities for FRACTAL GAMING and DAIMLER TRUCK
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FRACTAL and DAIMLER is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding FRACTAL GAMING GROUP and DAIMLER TRUCK SPADS12 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DAIMLER TRUCK SPADS12 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 DAIMLER TRUCK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DAIMLER TRUCK SPADS12 has no effect on the direction of FRACTAL GAMING i.e., FRACTAL GAMING and DAIMLER TRUCK go up and down completely randomly.
Pair Corralation between FRACTAL GAMING and DAIMLER TRUCK
Assuming the 90 days horizon FRACTAL GAMING GROUP is expected to generate 0.41 times more return on investment than DAIMLER TRUCK. However, FRACTAL GAMING GROUP is 2.45 times less risky than DAIMLER TRUCK. It trades about -0.24 of its potential returns per unit of risk. DAIMLER TRUCK SPADS12 is currently generating about -0.1 per unit of risk. If you would invest 289.00 in FRACTAL GAMING GROUP on September 5, 2024 and sell it today you would lose (19.00) from holding FRACTAL GAMING GROUP or give up 6.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
FRACTAL GAMING GROUP vs. DAIMLER TRUCK SPADS12
Performance |
| Timeline |
| FRACTAL GAMING GROUP |
| DAIMLER TRUCK SPADS12 |
FRACTAL GAMING and DAIMLER TRUCK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FRACTAL GAMING and DAIMLER TRUCK
The main advantage of trading using opposite FRACTAL GAMING and DAIMLER TRUCK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FRACTAL GAMING position performs unexpectedly, DAIMLER TRUCK 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 DAIMLER TRUCK will offset losses from the drop in DAIMLER TRUCK's long position.| FRACTAL GAMING vs. HP Inc | FRACTAL GAMING vs. Western Digital | FRACTAL GAMING vs. SEIKO EPSON PADR | FRACTAL GAMING vs. ELECOM LTD |
| DAIMLER TRUCK vs. CNVISION MEDIA | DAIMLER TRUCK vs. Computer And Technologies | DAIMLER TRUCK vs. Computershare Limited | DAIMLER TRUCK vs. RCS MediaGroup SpA |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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