Correlation Between Fractal Gaming and Media
Can any of the company-specific risk be diversified away by investing in both Fractal Gaming and Media 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 Media 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 Media and Games, you can compare the effects of market volatilities on Fractal Gaming and Media 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 Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fractal Gaming and Media.
Diversification Opportunities for Fractal Gaming and Media
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fractal and Media is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Fractal Gaming Group and Media and Games in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Media and Games 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 Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Media and Games has no effect on the direction of Fractal Gaming i.e., Fractal Gaming and Media go up and down completely randomly.
Pair Corralation between Fractal Gaming and Media
Assuming the 90 days trading horizon Fractal Gaming is expected to generate 1.74 times less return on investment than Media. But when comparing it to its historical volatility, Fractal Gaming Group is 1.32 times less risky than Media. It trades about 0.04 of its potential returns per unit of risk. Media and Games is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,790 in Media and Games on November 4, 2024 and sell it today you would earn a total of 2,090 from holding Media and Games or generate 116.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fractal Gaming Group vs. Media and Games
Performance |
| Timeline |
| Fractal Gaming Group |
| Media and Games |
Fractal Gaming and Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fractal Gaming and Media
The main advantage of trading using opposite Fractal Gaming and Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fractal Gaming position performs unexpectedly, Media 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 Media will offset losses from the drop in Media'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 |
| Media vs. Embracer Group AB | Media vs. Samhllsbyggnadsbolaget i Norden | Media vs. Sinch AB | Media vs. Zaptec AS |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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