Correlation Between FRACTAL GAMING and ELMOS SEMICONDUCTOR
Can any of the company-specific risk be diversified away by investing in both FRACTAL GAMING and ELMOS SEMICONDUCTOR 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 ELMOS SEMICONDUCTOR 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 ELMOS SEMICONDUCTOR, you can compare the effects of market volatilities on FRACTAL GAMING and ELMOS SEMICONDUCTOR 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 ELMOS SEMICONDUCTOR. Check out your portfolio center. Please also check ongoing floating volatility patterns of FRACTAL GAMING and ELMOS SEMICONDUCTOR.
Diversification Opportunities for FRACTAL GAMING and ELMOS SEMICONDUCTOR
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between FRACTAL and ELMOS is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding FRACTAL GAMING GROUP and ELMOS SEMICONDUCTOR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ELMOS SEMICONDUCTOR 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 ELMOS SEMICONDUCTOR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ELMOS SEMICONDUCTOR has no effect on the direction of FRACTAL GAMING i.e., FRACTAL GAMING and ELMOS SEMICONDUCTOR go up and down completely randomly.
Pair Corralation between FRACTAL GAMING and ELMOS SEMICONDUCTOR
Assuming the 90 days horizon FRACTAL GAMING GROUP is expected to generate 1.0 times more return on investment than ELMOS SEMICONDUCTOR. However, FRACTAL GAMING GROUP is 1.0 times less risky than ELMOS SEMICONDUCTOR. It trades about -0.01 of its potential returns per unit of risk. ELMOS SEMICONDUCTOR is currently generating about -0.01 per unit of risk. If you would invest 334.00 in FRACTAL GAMING GROUP on August 28, 2024 and sell it today you would lose (61.00) from holding FRACTAL GAMING GROUP or give up 18.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.72% |
| Values | Daily Returns |
FRACTAL GAMING GROUP vs. ELMOS SEMICONDUCTOR
Performance |
| Timeline |
| FRACTAL GAMING GROUP |
| ELMOS SEMICONDUCTOR |
FRACTAL GAMING and ELMOS SEMICONDUCTOR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FRACTAL GAMING and ELMOS SEMICONDUCTOR
The main advantage of trading using opposite FRACTAL GAMING and ELMOS SEMICONDUCTOR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FRACTAL GAMING position performs unexpectedly, ELMOS SEMICONDUCTOR 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 ELMOS SEMICONDUCTOR will offset losses from the drop in ELMOS SEMICONDUCTOR's long position.| FRACTAL GAMING vs. AGF Management Limited | FRACTAL GAMING vs. Sumitomo Rubber Industries | FRACTAL GAMING vs. Plastic Omnium | FRACTAL GAMING vs. Applied Materials |
| ELMOS SEMICONDUCTOR vs. Apple Inc | ELMOS SEMICONDUCTOR vs. Apple Inc | ELMOS SEMICONDUCTOR vs. Microsoft | ELMOS SEMICONDUCTOR vs. Microsoft |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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