Correlation Between FRACTAL GAMING and GigaMedia
Can any of the company-specific risk be diversified away by investing in both FRACTAL GAMING and GigaMedia 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 GigaMedia 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 GigaMedia, you can compare the effects of market volatilities on FRACTAL GAMING and GigaMedia 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 GigaMedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of FRACTAL GAMING and GigaMedia.
Diversification Opportunities for FRACTAL GAMING and GigaMedia
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between FRACTAL and GigaMedia is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding FRACTAL GAMING GROUP and GigaMedia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GigaMedia 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 GigaMedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GigaMedia has no effect on the direction of FRACTAL GAMING i.e., FRACTAL GAMING and GigaMedia go up and down completely randomly.
Pair Corralation between FRACTAL GAMING and GigaMedia
Assuming the 90 days horizon FRACTAL GAMING GROUP is expected to under-perform the GigaMedia. In addition to that, FRACTAL GAMING is 2.02 times more volatile than GigaMedia. It trades about 0.0 of its total potential returns per unit of risk. GigaMedia is currently generating about 0.02 per unit of volatility. If you would invest 128.00 in GigaMedia on August 27, 2024 and sell it today you would earn a total of 7.00 from holding GigaMedia or generate 5.47% 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. GigaMedia
Performance |
| Timeline |
| FRACTAL GAMING GROUP |
| GigaMedia |
FRACTAL GAMING and GigaMedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FRACTAL GAMING and GigaMedia
The main advantage of trading using opposite FRACTAL GAMING and GigaMedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FRACTAL GAMING position performs unexpectedly, GigaMedia 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 GigaMedia will offset losses from the drop in GigaMedia's long position.| FRACTAL GAMING vs. Sunny Optical Technology | FRACTAL GAMING vs. Align Technology | FRACTAL GAMING vs. SMA Solar Technology | FRACTAL GAMING vs. MINCO SILVER |
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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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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