Correlation Between COMBA TELECOM and FRACTAL GAMING
Can any of the company-specific risk be diversified away by investing in both COMBA TELECOM 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 COMBA TELECOM and FRACTAL GAMING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between COMBA TELECOM SYST and FRACTAL GAMING GROUP, you can compare the effects of market volatilities on COMBA TELECOM 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 COMBA TELECOM with a short position of FRACTAL GAMING. Check out your portfolio center. Please also check ongoing floating volatility patterns of COMBA TELECOM and FRACTAL GAMING.
Diversification Opportunities for COMBA TELECOM and FRACTAL GAMING
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between COMBA and FRACTAL is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding COMBA TELECOM SYST 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 COMBA TELECOM 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 COMBA TELECOM SYST 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 COMBA TELECOM i.e., COMBA TELECOM and FRACTAL GAMING go up and down completely randomly.
Pair Corralation between COMBA TELECOM and FRACTAL GAMING
Assuming the 90 days trading horizon COMBA TELECOM is expected to generate 1.12 times less return on investment than FRACTAL GAMING. But when comparing it to its historical volatility, COMBA TELECOM SYST is 1.27 times less risky than FRACTAL GAMING. It trades about 0.01 of its potential returns per unit of risk. FRACTAL GAMING GROUP is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 284.00 in FRACTAL GAMING GROUP on August 25, 2024 and sell it today you would lose (10.00) from holding FRACTAL GAMING GROUP or give up 3.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.64% |
| Values | Daily Returns |
COMBA TELECOM SYST vs. FRACTAL GAMING GROUP
Performance |
| Timeline |
| COMBA TELECOM SYST |
| FRACTAL GAMING GROUP |
COMBA TELECOM and FRACTAL GAMING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COMBA TELECOM and FRACTAL GAMING
The main advantage of trading using opposite COMBA TELECOM and FRACTAL GAMING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COMBA TELECOM 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.| COMBA TELECOM vs. Apple Inc | COMBA TELECOM vs. Apple Inc | COMBA TELECOM vs. Apple Inc | COMBA TELECOM vs. Apple Inc |
| FRACTAL GAMING vs. Treasury Wine Estates | FRACTAL GAMING vs. MOVIE GAMES SA | FRACTAL GAMING vs. Dalata Hotel Group | FRACTAL GAMING vs. NAKED WINES 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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