Correlation Between FRACTAL GAMING and Compagnie
Can any of the company-specific risk be diversified away by investing in both FRACTAL GAMING and Compagnie 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 Compagnie 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 Compagnie de Saint Gobain, you can compare the effects of market volatilities on FRACTAL GAMING and Compagnie 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 Compagnie. Check out your portfolio center. Please also check ongoing floating volatility patterns of FRACTAL GAMING and Compagnie.
Diversification Opportunities for FRACTAL GAMING and Compagnie
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between FRACTAL and Compagnie is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding FRACTAL GAMING GROUP and Compagnie de Saint Gobain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compagnie de Saint 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 Compagnie. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Compagnie de Saint has no effect on the direction of FRACTAL GAMING i.e., FRACTAL GAMING and Compagnie go up and down completely randomly.
Pair Corralation between FRACTAL GAMING and Compagnie
Assuming the 90 days horizon FRACTAL GAMING GROUP is expected to generate 1.61 times more return on investment than Compagnie. However, FRACTAL GAMING is 1.61 times more volatile than Compagnie de Saint Gobain. It trades about 0.38 of its potential returns per unit of risk. Compagnie de Saint Gobain is currently generating about -0.2 per unit of risk. If you would invest 265.00 in FRACTAL GAMING GROUP on October 15, 2024 and sell it today you would earn a total of 38.00 from holding FRACTAL GAMING GROUP or generate 14.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FRACTAL GAMING GROUP vs. Compagnie de Saint Gobain
Performance |
| Timeline |
| FRACTAL GAMING GROUP |
| Compagnie de Saint |
FRACTAL GAMING and Compagnie Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FRACTAL GAMING and Compagnie
The main advantage of trading using opposite FRACTAL GAMING and Compagnie positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FRACTAL GAMING position performs unexpectedly, Compagnie 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 Compagnie will offset losses from the drop in Compagnie's long position.| FRACTAL GAMING vs. Eidesvik Offshore ASA | FRACTAL GAMING vs. MEDICAL FACILITIES NEW | FRACTAL GAMING vs. PT Wintermar Offshore | FRACTAL GAMING vs. China Communications Services |
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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