Correlation Between FRACTAL GAMING and GAMESTOP
Can any of the company-specific risk be diversified away by investing in both FRACTAL GAMING and GAMESTOP 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 GAMESTOP 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 GAMESTOP, you can compare the effects of market volatilities on FRACTAL GAMING and GAMESTOP 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 GAMESTOP. Check out your portfolio center. Please also check ongoing floating volatility patterns of FRACTAL GAMING and GAMESTOP.
Diversification Opportunities for FRACTAL GAMING and GAMESTOP
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between FRACTAL and GAMESTOP is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding FRACTAL GAMING GROUP and GAMESTOP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GAMESTOP 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 GAMESTOP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GAMESTOP has no effect on the direction of FRACTAL GAMING i.e., FRACTAL GAMING and GAMESTOP go up and down completely randomly.
Pair Corralation between FRACTAL GAMING and GAMESTOP
Assuming the 90 days horizon FRACTAL GAMING is expected to generate 25.58 times less return on investment than GAMESTOP. But when comparing it to its historical volatility, FRACTAL GAMING GROUP is 3.43 times less risky than GAMESTOP. It trades about 0.01 of its potential returns per unit of risk. GAMESTOP is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,200 in GAMESTOP on August 25, 2024 and sell it today you would earn a total of 1,435 from holding GAMESTOP or generate 119.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.64% |
| Values | Daily Returns |
FRACTAL GAMING GROUP vs. GAMESTOP
Performance |
| Timeline |
| FRACTAL GAMING GROUP |
| GAMESTOP |
FRACTAL GAMING and GAMESTOP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FRACTAL GAMING and GAMESTOP
The main advantage of trading using opposite FRACTAL GAMING and GAMESTOP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FRACTAL GAMING position performs unexpectedly, GAMESTOP 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 GAMESTOP will offset losses from the drop in GAMESTOP's long position.| FRACTAL GAMING vs. Treasury Wine Estates | FRACTAL GAMING vs. MOVIE GAMES SA | FRACTAL GAMING vs. Dalata Hotel Group | FRACTAL GAMING vs. NAKED WINES PLC |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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