Correlation Between Fractal Gaming and KABE Group
Can any of the company-specific risk be diversified away by investing in both Fractal Gaming and KABE Group 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 KABE Group 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 KABE Group AB, you can compare the effects of market volatilities on Fractal Gaming and KABE Group 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 KABE Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fractal Gaming and KABE Group.
Diversification Opportunities for Fractal Gaming and KABE Group
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Fractal and KABE is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Fractal Gaming Group and KABE Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KABE Group 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 KABE Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KABE Group AB has no effect on the direction of Fractal Gaming i.e., Fractal Gaming and KABE Group go up and down completely randomly.
Pair Corralation between Fractal Gaming and KABE Group
Assuming the 90 days trading horizon Fractal Gaming Group is expected to under-perform the KABE Group. In addition to that, Fractal Gaming is 1.38 times more volatile than KABE Group AB. It trades about -0.07 of its total potential returns per unit of risk. KABE Group AB is currently generating about -0.02 per unit of volatility. If you would invest 31,796 in KABE Group AB on September 2, 2024 and sell it today you would lose (1,896) from holding KABE Group AB or give up 5.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fractal Gaming Group vs. KABE Group AB
Performance |
| Timeline |
| Fractal Gaming Group |
| KABE Group AB |
Fractal Gaming and KABE Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fractal Gaming and KABE Group
The main advantage of trading using opposite Fractal Gaming and KABE Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fractal Gaming position performs unexpectedly, KABE Group 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 KABE Group will offset losses from the drop in KABE Group'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 |
| KABE Group vs. Byggmax Group AB | KABE Group vs. Svedbergs i Dalstorp | KABE Group vs. Inwido AB | KABE Group vs. New Wave Group |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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