Correlation Between FRACTAL GAMING and SK TELECOM
Can any of the company-specific risk be diversified away by investing in both FRACTAL GAMING and SK TELECOM 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 SK TELECOM 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 SK TELECOM TDADR, you can compare the effects of market volatilities on FRACTAL GAMING and SK TELECOM 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 SK TELECOM. Check out your portfolio center. Please also check ongoing floating volatility patterns of FRACTAL GAMING and SK TELECOM.
Diversification Opportunities for FRACTAL GAMING and SK TELECOM
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between FRACTAL and KMBA is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding FRACTAL GAMING GROUP and SK TELECOM TDADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SK TELECOM TDADR 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 SK TELECOM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SK TELECOM TDADR has no effect on the direction of FRACTAL GAMING i.e., FRACTAL GAMING and SK TELECOM go up and down completely randomly.
Pair Corralation between FRACTAL GAMING and SK TELECOM
Assuming the 90 days horizon FRACTAL GAMING GROUP is expected to generate 1.73 times more return on investment than SK TELECOM. However, FRACTAL GAMING is 1.73 times more volatile than SK TELECOM TDADR. It trades about 0.02 of its potential returns per unit of risk. SK TELECOM TDADR is currently generating about 0.03 per unit of risk. If you would invest 267.00 in FRACTAL GAMING GROUP on August 29, 2024 and sell it today you would earn a total of 6.00 from holding FRACTAL GAMING GROUP or generate 2.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FRACTAL GAMING GROUP vs. SK TELECOM TDADR
Performance |
| Timeline |
| FRACTAL GAMING GROUP |
| SK TELECOM TDADR |
FRACTAL GAMING and SK TELECOM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FRACTAL GAMING and SK TELECOM
The main advantage of trading using opposite FRACTAL GAMING and SK TELECOM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FRACTAL GAMING position performs unexpectedly, SK TELECOM 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 SK TELECOM will offset losses from the drop in SK TELECOM's long position.| FRACTAL GAMING vs. AGF Management Limited | FRACTAL GAMING vs. Sumitomo Rubber Industries | FRACTAL GAMING vs. Plastic Omnium | FRACTAL GAMING vs. Applied Materials |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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