Correlation Between FRACTAL GAMING and Hisense Home
Can any of the company-specific risk be diversified away by investing in both FRACTAL GAMING and Hisense Home 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 Hisense Home 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 Hisense Home Appliances, you can compare the effects of market volatilities on FRACTAL GAMING and Hisense Home 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 Hisense Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of FRACTAL GAMING and Hisense Home.
Diversification Opportunities for FRACTAL GAMING and Hisense Home
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between FRACTAL and Hisense is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding FRACTAL GAMING GROUP and Hisense Home Appliances in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hisense Home Appliances 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 Hisense Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hisense Home Appliances has no effect on the direction of FRACTAL GAMING i.e., FRACTAL GAMING and Hisense Home go up and down completely randomly.
Pair Corralation between FRACTAL GAMING and Hisense Home
Assuming the 90 days horizon FRACTAL GAMING GROUP is expected to generate 1.08 times more return on investment than Hisense Home. However, FRACTAL GAMING is 1.08 times more volatile than Hisense Home Appliances. It trades about 0.29 of its potential returns per unit of risk. Hisense Home Appliances is currently generating about 0.28 per unit of risk. If you would invest 276.00 in FRACTAL GAMING GROUP on October 11, 2024 and sell it today you would earn a total of 33.00 from holding FRACTAL GAMING GROUP or generate 11.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FRACTAL GAMING GROUP vs. Hisense Home Appliances
Performance |
| Timeline |
| FRACTAL GAMING GROUP |
| Hisense Home Appliances |
FRACTAL GAMING and Hisense Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FRACTAL GAMING and Hisense Home
The main advantage of trading using opposite FRACTAL GAMING and Hisense Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FRACTAL GAMING position performs unexpectedly, Hisense Home 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 Hisense Home will offset losses from the drop in Hisense Home's long position.| FRACTAL GAMING vs. COFCO Joycome Foods | FRACTAL GAMING vs. LPKF Laser Electronics | FRACTAL GAMING vs. SENECA FOODS A | FRACTAL GAMING vs. AOI Electronics Co |
| Hisense Home vs. Man Wah Holdings | Hisense Home vs. Superior Plus Corp | Hisense Home vs. NMI Holdings | Hisense Home vs. SIVERS SEMICONDUCTORS AB |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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