Correlation Between Caseys General and FRACTAL GAMING
Can any of the company-specific risk be diversified away by investing in both Caseys General 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 Caseys General and FRACTAL GAMING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Caseys General Stores and FRACTAL GAMING GROUP, you can compare the effects of market volatilities on Caseys General 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 Caseys General with a short position of FRACTAL GAMING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caseys General and FRACTAL GAMING.
Diversification Opportunities for Caseys General and FRACTAL GAMING
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Caseys and FRACTAL is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Caseys General Stores 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 Caseys General 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 Caseys General Stores 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 Caseys General i.e., Caseys General and FRACTAL GAMING go up and down completely randomly.
Pair Corralation between Caseys General and FRACTAL GAMING
Assuming the 90 days trading horizon Caseys General Stores is expected to generate 0.53 times more return on investment than FRACTAL GAMING. However, Caseys General Stores is 1.89 times less risky than FRACTAL GAMING. It trades about 0.08 of its potential returns per unit of risk. FRACTAL GAMING GROUP is currently generating about 0.04 per unit of risk. If you would invest 20,527 in Caseys General Stores on October 16, 2024 and sell it today you would earn a total of 17,873 from holding Caseys General Stores or generate 87.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Caseys General Stores vs. FRACTAL GAMING GROUP
Performance |
| Timeline |
| Caseys General Stores |
| FRACTAL GAMING GROUP |
Caseys General and FRACTAL GAMING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Caseys General and FRACTAL GAMING
The main advantage of trading using opposite Caseys General and FRACTAL GAMING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Caseys General 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.| Caseys General vs. INTER CARS SA | Caseys General vs. MUTUIONLINE | Caseys General vs. VARIOUS EATERIES LS | Caseys General vs. Sekisui Chemical Co |
| FRACTAL GAMING vs. ADRIATIC METALS LS 013355 | FRACTAL GAMING vs. Aluminum of | FRACTAL GAMING vs. PARKEN Sport Entertainment | FRACTAL GAMING vs. Caseys General Stores |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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