Correlation Between FRACTAL GAMING and SOCKET MOBILE
Can any of the company-specific risk be diversified away by investing in both FRACTAL GAMING and SOCKET MOBILE 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 SOCKET MOBILE 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 SOCKET MOBILE NEW, you can compare the effects of market volatilities on FRACTAL GAMING and SOCKET MOBILE 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 SOCKET MOBILE. Check out your portfolio center. Please also check ongoing floating volatility patterns of FRACTAL GAMING and SOCKET MOBILE.
Diversification Opportunities for FRACTAL GAMING and SOCKET MOBILE
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between FRACTAL and SOCKET is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding FRACTAL GAMING GROUP and SOCKET MOBILE NEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SOCKET MOBILE NEW 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 SOCKET MOBILE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SOCKET MOBILE NEW has no effect on the direction of FRACTAL GAMING i.e., FRACTAL GAMING and SOCKET MOBILE go up and down completely randomly.
Pair Corralation between FRACTAL GAMING and SOCKET MOBILE
Assuming the 90 days horizon FRACTAL GAMING GROUP is expected to generate 0.67 times more return on investment than SOCKET MOBILE. However, FRACTAL GAMING GROUP is 1.49 times less risky than SOCKET MOBILE. It trades about 0.25 of its potential returns per unit of risk. SOCKET MOBILE NEW is currently generating about 0.14 per unit of risk. If you would invest 281.00 in FRACTAL GAMING GROUP on October 12, 2024 and sell it today you would earn a total of 29.00 from holding FRACTAL GAMING GROUP or generate 10.32% 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. SOCKET MOBILE NEW
Performance |
| Timeline |
| FRACTAL GAMING GROUP |
| SOCKET MOBILE NEW |
FRACTAL GAMING and SOCKET MOBILE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FRACTAL GAMING and SOCKET MOBILE
The main advantage of trading using opposite FRACTAL GAMING and SOCKET MOBILE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FRACTAL GAMING position performs unexpectedly, SOCKET MOBILE 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 SOCKET MOBILE will offset losses from the drop in SOCKET MOBILE's long position.| FRACTAL GAMING vs. Datalogic SpA | FRACTAL GAMING vs. Superior Plus Corp | FRACTAL GAMING vs. NMI Holdings | FRACTAL GAMING vs. SIVERS SEMICONDUCTORS AB |
| SOCKET MOBILE vs. MACOM Technology Solutions | SOCKET MOBILE vs. Nordic Semiconductor ASA | SOCKET MOBILE vs. MUTUIONLINE | SOCKET MOBILE vs. PACIFIC ONLINE |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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