Correlation Between Alfa Financial and FRACTAL GAMING
Can any of the company-specific risk be diversified away by investing in both Alfa Financial and FRACTAL GAMING 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 Alfa Financial and FRACTAL GAMING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alfa Financial Software and FRACTAL GAMING GROUP, you can compare the effects of market volatilities on Alfa Financial and FRACTAL GAMING 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 Alfa Financial with a short position of FRACTAL GAMING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alfa Financial and FRACTAL GAMING.
Diversification Opportunities for Alfa Financial and FRACTAL GAMING
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Alfa and FRACTAL is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Alfa Financial Software and FRACTAL GAMING GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FRACTAL GAMING GROUP and Alfa Financial 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 Alfa Financial Software are associated (or correlated) with FRACTAL GAMING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FRACTAL GAMING GROUP has no effect on the direction of Alfa Financial i.e., Alfa Financial and FRACTAL GAMING go up and down completely randomly.
Pair Corralation between Alfa Financial and FRACTAL GAMING
Assuming the 90 days trading horizon Alfa Financial Software is expected to under-perform the FRACTAL GAMING. But the stock apears to be less risky and, when comparing its historical volatility, Alfa Financial Software is 1.77 times less risky than FRACTAL GAMING. The stock trades about -0.32 of its potential returns per unit of risk. The FRACTAL GAMING GROUP is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 272.00 in FRACTAL GAMING GROUP on October 13, 2024 and sell it today you would earn a total of 32.00 from holding FRACTAL GAMING GROUP or generate 11.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alfa Financial Software vs. FRACTAL GAMING GROUP
Performance |
| Timeline |
| Alfa Financial Software |
| FRACTAL GAMING GROUP |
Alfa Financial and FRACTAL GAMING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alfa Financial and FRACTAL GAMING
The main advantage of trading using opposite Alfa Financial and FRACTAL GAMING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alfa Financial position performs unexpectedly, FRACTAL GAMING 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 FRACTAL GAMING will offset losses from the drop in FRACTAL GAMING's long position.| Alfa Financial vs. PEPTONIC MEDICAL | Alfa Financial vs. CompuGroup Medical SE | Alfa Financial vs. FIREWEED METALS P | Alfa Financial vs. SPECTRAL MEDICAL |
| FRACTAL GAMING vs. Firan Technology Group | FRACTAL GAMING vs. UPDATE SOFTWARE | FRACTAL GAMING vs. Alfa Financial Software | FRACTAL GAMING vs. X FAB Silicon Foundries |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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