Correlation Between FRACTAL GAMING and GREENLIGHT CAP
Can any of the company-specific risk be diversified away by investing in both FRACTAL GAMING and GREENLIGHT CAP 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 GREENLIGHT CAP 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 GREENLIGHT CAP RE, you can compare the effects of market volatilities on FRACTAL GAMING and GREENLIGHT CAP 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 GREENLIGHT CAP. Check out your portfolio center. Please also check ongoing floating volatility patterns of FRACTAL GAMING and GREENLIGHT CAP.
Diversification Opportunities for FRACTAL GAMING and GREENLIGHT CAP
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FRACTAL and GREENLIGHT is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding FRACTAL GAMING GROUP and GREENLIGHT CAP RE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GREENLIGHT CAP RE 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 GREENLIGHT CAP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GREENLIGHT CAP RE has no effect on the direction of FRACTAL GAMING i.e., FRACTAL GAMING and GREENLIGHT CAP go up and down completely randomly.
Pair Corralation between FRACTAL GAMING and GREENLIGHT CAP
Assuming the 90 days horizon FRACTAL GAMING GROUP is expected to generate 1.79 times more return on investment than GREENLIGHT CAP. However, FRACTAL GAMING is 1.79 times more volatile than GREENLIGHT CAP RE. It trades about 0.03 of its potential returns per unit of risk. GREENLIGHT CAP RE is currently generating about 0.05 per unit of risk. If you would invest 232.00 in FRACTAL GAMING GROUP on October 30, 2024 and sell it today you would earn a total of 59.00 from holding FRACTAL GAMING GROUP or generate 25.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
FRACTAL GAMING GROUP vs. GREENLIGHT CAP RE
Performance |
| Timeline |
| FRACTAL GAMING GROUP |
| GREENLIGHT CAP RE |
FRACTAL GAMING and GREENLIGHT CAP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FRACTAL GAMING and GREENLIGHT CAP
The main advantage of trading using opposite FRACTAL GAMING and GREENLIGHT CAP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FRACTAL GAMING position performs unexpectedly, GREENLIGHT CAP 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 GREENLIGHT CAP will offset losses from the drop in GREENLIGHT CAP's long position.| FRACTAL GAMING vs. ALTAIR RES INC | FRACTAL GAMING vs. PKSHA TECHNOLOGY INC | FRACTAL GAMING vs. Vishay Intertechnology | FRACTAL GAMING vs. DELTA AIR LINES |
| GREENLIGHT CAP vs. PARKEN Sport Entertainment | GREENLIGHT CAP vs. Sunny Optical Technology | GREENLIGHT CAP vs. PKSHA TECHNOLOGY INC | GREENLIGHT CAP vs. Vishay Intertechnology |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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