Correlation Between FRACTAL GAMING and AECOM
Can any of the company-specific risk be diversified away by investing in both FRACTAL GAMING and AECOM 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 AECOM 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 AECOM, you can compare the effects of market volatilities on FRACTAL GAMING and AECOM 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 AECOM. Check out your portfolio center. Please also check ongoing floating volatility patterns of FRACTAL GAMING and AECOM.
Diversification Opportunities for FRACTAL GAMING and AECOM
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between FRACTAL and AECOM is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding FRACTAL GAMING GROUP and AECOM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AECOM 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 AECOM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AECOM has no effect on the direction of FRACTAL GAMING i.e., FRACTAL GAMING and AECOM go up and down completely randomly.
Pair Corralation between FRACTAL GAMING and AECOM
Assuming the 90 days horizon FRACTAL GAMING GROUP is expected to under-perform the AECOM. But the stock apears to be less risky and, when comparing its historical volatility, FRACTAL GAMING GROUP is 1.76 times less risky than AECOM. The stock trades about -0.2 of its potential returns per unit of risk. The AECOM is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 9,200 in AECOM on September 3, 2024 and sell it today you would earn a total of 1,800 from holding AECOM or generate 19.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FRACTAL GAMING GROUP vs. AECOM
Performance |
| Timeline |
| FRACTAL GAMING GROUP |
| AECOM |
FRACTAL GAMING and AECOM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FRACTAL GAMING and AECOM
The main advantage of trading using opposite FRACTAL GAMING and AECOM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FRACTAL GAMING position performs unexpectedly, AECOM 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 AECOM will offset losses from the drop in AECOM's long position.| FRACTAL GAMING vs. H FARM SPA | FRACTAL GAMING vs. STORE ELECTRONIC | FRACTAL GAMING vs. ELECTRONIC ARTS | FRACTAL GAMING vs. DAIRY FARM INTL |
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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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