Correlation Between Fractal Gaming and Gaming Corps
Can any of the company-specific risk be diversified away by investing in both Fractal Gaming and Gaming Corps 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 Gaming Corps 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 Gaming Corps AB, you can compare the effects of market volatilities on Fractal Gaming and Gaming Corps 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 Gaming Corps. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fractal Gaming and Gaming Corps.
Diversification Opportunities for Fractal Gaming and Gaming Corps
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Fractal and Gaming is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Fractal Gaming Group and Gaming Corps AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gaming Corps AB 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 Gaming Corps. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gaming Corps AB has no effect on the direction of Fractal Gaming i.e., Fractal Gaming and Gaming Corps go up and down completely randomly.
Pair Corralation between Fractal Gaming and Gaming Corps
Assuming the 90 days trading horizon Fractal Gaming Group is expected to generate 0.5 times more return on investment than Gaming Corps. However, Fractal Gaming Group is 2.0 times less risky than Gaming Corps. It trades about -0.02 of its potential returns per unit of risk. Gaming Corps AB is currently generating about -0.05 per unit of risk. If you would invest 3,590 in Fractal Gaming Group on September 3, 2024 and sell it today you would lose (420.00) from holding Fractal Gaming Group or give up 11.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fractal Gaming Group vs. Gaming Corps AB
Performance |
| Timeline |
| Fractal Gaming Group |
| Gaming Corps AB |
Fractal Gaming and Gaming Corps Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fractal Gaming and Gaming Corps
The main advantage of trading using opposite Fractal Gaming and Gaming Corps positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fractal Gaming position performs unexpectedly, Gaming Corps 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 Gaming Corps will offset losses from the drop in Gaming Corps' 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 |
| Gaming Corps vs. Idogen AB | Gaming Corps vs. Clean Motion AB | Gaming Corps vs. Arion banki hf | Gaming Corps vs. KABE Group 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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