Correlation Between FRACTAL GAMING and Urban Outfitters
Can any of the company-specific risk be diversified away by investing in both FRACTAL GAMING and Urban Outfitters 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 Urban Outfitters 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 Urban Outfitters, you can compare the effects of market volatilities on FRACTAL GAMING and Urban Outfitters 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 Urban Outfitters. Check out your portfolio center. Please also check ongoing floating volatility patterns of FRACTAL GAMING and Urban Outfitters.
Diversification Opportunities for FRACTAL GAMING and Urban Outfitters
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FRACTAL and Urban is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding FRACTAL GAMING GROUP and Urban Outfitters in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Urban Outfitters 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 Urban Outfitters. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Urban Outfitters has no effect on the direction of FRACTAL GAMING i.e., FRACTAL GAMING and Urban Outfitters go up and down completely randomly.
Pair Corralation between FRACTAL GAMING and Urban Outfitters
Assuming the 90 days horizon FRACTAL GAMING GROUP is expected to generate 1.07 times more return on investment than Urban Outfitters. However, FRACTAL GAMING is 1.07 times more volatile than Urban Outfitters. It trades about 0.38 of its potential returns per unit of risk. Urban Outfitters is currently generating about 0.29 per unit of risk. If you would invest 265.00 in FRACTAL GAMING GROUP on October 15, 2024 and sell it today you would earn a total of 38.00 from holding FRACTAL GAMING GROUP or generate 14.34% 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. Urban Outfitters
Performance |
| Timeline |
| FRACTAL GAMING GROUP |
| Urban Outfitters |
FRACTAL GAMING and Urban Outfitters Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FRACTAL GAMING and Urban Outfitters
The main advantage of trading using opposite FRACTAL GAMING and Urban Outfitters positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FRACTAL GAMING position performs unexpectedly, Urban Outfitters 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 Urban Outfitters will offset losses from the drop in Urban Outfitters' long position.| FRACTAL GAMING vs. Perdoceo Education | FRACTAL GAMING vs. ALERION CLEANPOWER | FRACTAL GAMING vs. Corporate Travel Management | FRACTAL GAMING vs. Cleanaway Waste Management |
| Urban Outfitters vs. Aegean Airlines SA | Urban Outfitters vs. FRACTAL GAMING GROUP | Urban Outfitters vs. United Airlines Holdings | Urban Outfitters vs. Zoom Video Communications |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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