Correlation Between FRACTAL GAMING and Pembina Pipeline
Can any of the company-specific risk be diversified away by investing in both FRACTAL GAMING and Pembina Pipeline 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 Pembina Pipeline 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 Pembina Pipeline Corp, you can compare the effects of market volatilities on FRACTAL GAMING and Pembina Pipeline 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 Pembina Pipeline. Check out your portfolio center. Please also check ongoing floating volatility patterns of FRACTAL GAMING and Pembina Pipeline.
Diversification Opportunities for FRACTAL GAMING and Pembina Pipeline
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between FRACTAL and Pembina is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding FRACTAL GAMING GROUP and Pembina Pipeline Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pembina Pipeline Corp 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 Pembina Pipeline. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pembina Pipeline Corp has no effect on the direction of FRACTAL GAMING i.e., FRACTAL GAMING and Pembina Pipeline go up and down completely randomly.
Pair Corralation between FRACTAL GAMING and Pembina Pipeline
Assuming the 90 days horizon FRACTAL GAMING is expected to generate 1.97 times less return on investment than Pembina Pipeline. In addition to that, FRACTAL GAMING is 2.55 times more volatile than Pembina Pipeline Corp. It trades about 0.02 of its total potential returns per unit of risk. Pembina Pipeline Corp is currently generating about 0.1 per unit of volatility. If you would invest 2,434 in Pembina Pipeline Corp on October 16, 2024 and sell it today you would earn a total of 1,141 from holding Pembina Pipeline Corp or generate 46.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FRACTAL GAMING GROUP vs. Pembina Pipeline Corp
Performance |
| Timeline |
| FRACTAL GAMING GROUP |
| Pembina Pipeline Corp |
FRACTAL GAMING and Pembina Pipeline Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FRACTAL GAMING and Pembina Pipeline
The main advantage of trading using opposite FRACTAL GAMING and Pembina Pipeline positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FRACTAL GAMING position performs unexpectedly, Pembina Pipeline 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 Pembina Pipeline will offset losses from the drop in Pembina Pipeline'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 |
| Pembina Pipeline vs. Linedata Services SA | Pembina Pipeline vs. QINGCI GAMES INC | Pembina Pipeline vs. FRACTAL GAMING GROUP | Pembina Pipeline vs. Automatic Data Processing |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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