Correlation Between FRACTAL GAMING and Tradegate
Can any of the company-specific risk be diversified away by investing in both FRACTAL GAMING and Tradegate 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 Tradegate 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 Tradegate AG Wertpapierhandelsbank, you can compare the effects of market volatilities on FRACTAL GAMING and Tradegate 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 Tradegate. Check out your portfolio center. Please also check ongoing floating volatility patterns of FRACTAL GAMING and Tradegate.
Diversification Opportunities for FRACTAL GAMING and Tradegate
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FRACTAL and Tradegate is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding FRACTAL GAMING GROUP and Tradegate AG Wertpapierhandels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tradegate AG Wertpap 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 Tradegate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tradegate AG Wertpap has no effect on the direction of FRACTAL GAMING i.e., FRACTAL GAMING and Tradegate go up and down completely randomly.
Pair Corralation between FRACTAL GAMING and Tradegate
Assuming the 90 days horizon FRACTAL GAMING GROUP is expected to generate 2.7 times more return on investment than Tradegate. However, FRACTAL GAMING is 2.7 times more volatile than Tradegate AG Wertpapierhandelsbank. It trades about 0.04 of its potential returns per unit of risk. Tradegate AG Wertpapierhandelsbank is currently generating about -0.03 per unit of risk. If you would invest 214.00 in FRACTAL GAMING GROUP on October 13, 2024 and sell it today you would earn a total of 90.00 from holding FRACTAL GAMING GROUP or generate 42.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
FRACTAL GAMING GROUP vs. Tradegate AG Wertpapierhandels
Performance |
| Timeline |
| FRACTAL GAMING GROUP |
| Tradegate AG Wertpap |
FRACTAL GAMING and Tradegate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FRACTAL GAMING and Tradegate
The main advantage of trading using opposite FRACTAL GAMING and Tradegate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FRACTAL GAMING position performs unexpectedly, Tradegate 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 Tradegate will offset losses from the drop in Tradegate's long position.| FRACTAL GAMING vs. Firan Technology Group | FRACTAL GAMING vs. UPDATE SOFTWARE | FRACTAL GAMING vs. Alfa Financial Software | FRACTAL GAMING vs. X FAB Silicon Foundries |
| Tradegate vs. FRACTAL GAMING GROUP | Tradegate vs. SWISS WATER DECAFFCOFFEE | Tradegate vs. MOVIE GAMES SA | Tradegate vs. Hochschild Mining 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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