Correlation Between Fractal Gaming and Arctic Blue
Can any of the company-specific risk be diversified away by investing in both Fractal Gaming and Arctic Blue 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 Arctic Blue 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 Arctic Blue Beverages, you can compare the effects of market volatilities on Fractal Gaming and Arctic Blue 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 Arctic Blue. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fractal Gaming and Arctic Blue.
Diversification Opportunities for Fractal Gaming and Arctic Blue
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fractal and Arctic is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Fractal Gaming Group and Arctic Blue Beverages in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arctic Blue Beverages 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 Arctic Blue. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arctic Blue Beverages has no effect on the direction of Fractal Gaming i.e., Fractal Gaming and Arctic Blue go up and down completely randomly.
Pair Corralation between Fractal Gaming and Arctic Blue
Assuming the 90 days trading horizon Fractal Gaming Group is expected to generate 0.43 times more return on investment than Arctic Blue. However, Fractal Gaming Group is 2.33 times less risky than Arctic Blue. It trades about -0.16 of its potential returns per unit of risk. Arctic Blue Beverages is currently generating about -0.33 per unit of risk. If you would invest 3,490 in Fractal Gaming Group on September 3, 2024 and sell it today you would lose (320.00) from holding Fractal Gaming Group or give up 9.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fractal Gaming Group vs. Arctic Blue Beverages
Performance |
| Timeline |
| Fractal Gaming Group |
| Arctic Blue Beverages |
Fractal Gaming and Arctic Blue Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fractal Gaming and Arctic Blue
The main advantage of trading using opposite Fractal Gaming and Arctic Blue positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fractal Gaming position performs unexpectedly, Arctic Blue 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 Arctic Blue will offset losses from the drop in Arctic Blue's long position.| Fractal Gaming vs. Media and Games | Fractal Gaming vs. Cint Group AB | Fractal Gaming vs. Thunderful Group AB | Fractal Gaming vs. Enad Global 7 |
| Arctic Blue vs. Cint Group AB | Arctic Blue vs. Nordic Waterproofing Holding | Arctic Blue vs. Synsam AB | Arctic Blue vs. Inwido AB |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |