Correlation Between Fractal Gaming and Flexion Mobile
Can any of the company-specific risk be diversified away by investing in both Fractal Gaming and Flexion Mobile 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 Flexion Mobile 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 Flexion Mobile PLC, you can compare the effects of market volatilities on Fractal Gaming and Flexion Mobile 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 Flexion Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fractal Gaming and Flexion Mobile.
Diversification Opportunities for Fractal Gaming and Flexion Mobile
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fractal and Flexion is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Fractal Gaming Group and Flexion Mobile PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flexion Mobile PLC 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 Flexion Mobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flexion Mobile PLC has no effect on the direction of Fractal Gaming i.e., Fractal Gaming and Flexion Mobile go up and down completely randomly.
Pair Corralation between Fractal Gaming and Flexion Mobile
Assuming the 90 days trading horizon Fractal Gaming Group is expected to under-perform the Flexion Mobile. In addition to that, Fractal Gaming is 1.04 times more volatile than Flexion Mobile PLC. It trades about -0.07 of its total potential returns per unit of risk. Flexion Mobile PLC is currently generating about -0.06 per unit of volatility. If you would invest 974.00 in Flexion Mobile PLC on September 1, 2024 and sell it today you would lose (200.00) from holding Flexion Mobile PLC or give up 20.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fractal Gaming Group vs. Flexion Mobile PLC
Performance |
| Timeline |
| Fractal Gaming Group |
| Flexion Mobile PLC |
Fractal Gaming and Flexion Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fractal Gaming and Flexion Mobile
The main advantage of trading using opposite Fractal Gaming and Flexion Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fractal Gaming position performs unexpectedly, Flexion Mobile 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 Flexion Mobile will offset losses from the drop in Flexion Mobile'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 |
| Flexion Mobile vs. Upsales Technology AB | Flexion Mobile vs. JLT Mobile Computers | Flexion Mobile vs. USWE Sports AB | Flexion Mobile vs. White Pearl Technology |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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