Correlation Between Align Technology and FRACTAL GAMING
Can any of the company-specific risk be diversified away by investing in both Align Technology 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 Align Technology and FRACTAL GAMING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Align Technology and FRACTAL GAMING GROUP, you can compare the effects of market volatilities on Align Technology 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 Align Technology with a short position of FRACTAL GAMING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Align Technology and FRACTAL GAMING.
Diversification Opportunities for Align Technology and FRACTAL GAMING
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Align and FRACTAL is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Align Technology 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 Align Technology 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 Align Technology 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 Align Technology i.e., Align Technology and FRACTAL GAMING go up and down completely randomly.
Pair Corralation between Align Technology and FRACTAL GAMING
Assuming the 90 days horizon Align Technology is expected to under-perform the FRACTAL GAMING. But the stock apears to be less risky and, when comparing its historical volatility, Align Technology is 1.12 times less risky than FRACTAL GAMING. The stock trades about -0.02 of its potential returns per unit of risk. The FRACTAL GAMING GROUP is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 230.00 in FRACTAL GAMING GROUP on August 27, 2024 and sell it today you would earn a total of 43.00 from holding FRACTAL GAMING GROUP or generate 18.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Align Technology vs. FRACTAL GAMING GROUP
Performance |
| Timeline |
| Align Technology |
| FRACTAL GAMING GROUP |
Align Technology and FRACTAL GAMING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Align Technology and FRACTAL GAMING
The main advantage of trading using opposite Align Technology and FRACTAL GAMING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Align Technology 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.| Align Technology vs. Superior Plus Corp | Align Technology vs. NMI Holdings | Align Technology vs. Origin Agritech | Align Technology vs. SIVERS SEMICONDUCTORS AB |
| FRACTAL GAMING vs. Sunny Optical Technology | FRACTAL GAMING vs. Align Technology | FRACTAL GAMING vs. SMA Solar Technology | FRACTAL GAMING vs. MINCO SILVER |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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