Correlation Between FRACTAL GAMING and Nike
Can any of the company-specific risk be diversified away by investing in both FRACTAL GAMING and Nike 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 Nike 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 Nike Inc, you can compare the effects of market volatilities on FRACTAL GAMING and Nike 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 Nike. Check out your portfolio center. Please also check ongoing floating volatility patterns of FRACTAL GAMING and Nike.
Diversification Opportunities for FRACTAL GAMING and Nike
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between FRACTAL and Nike is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding FRACTAL GAMING GROUP and Nike Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nike Inc 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 Nike. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nike Inc has no effect on the direction of FRACTAL GAMING i.e., FRACTAL GAMING and Nike go up and down completely randomly.
Pair Corralation between FRACTAL GAMING and Nike
Assuming the 90 days horizon FRACTAL GAMING GROUP is expected to generate 1.85 times more return on investment than Nike. However, FRACTAL GAMING is 1.85 times more volatile than Nike Inc. It trades about 0.28 of its potential returns per unit of risk. Nike Inc is currently generating about -0.19 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 Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FRACTAL GAMING GROUP vs. Nike Inc
Performance |
| Timeline |
| FRACTAL GAMING GROUP |
| Nike Inc |
FRACTAL GAMING and Nike Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FRACTAL GAMING and Nike
The main advantage of trading using opposite FRACTAL GAMING and Nike positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FRACTAL GAMING position performs unexpectedly, Nike 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 Nike will offset losses from the drop in Nike'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 |
| Nike vs. Scientific Games | Nike vs. FRACTAL GAMING GROUP | Nike vs. Digilife Technologies Limited | Nike vs. PENN NATL GAMING |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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