Correlation Between Fractal Gaming and Starbreeze
Can any of the company-specific risk be diversified away by investing in both Fractal Gaming and Starbreeze 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 Starbreeze 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 Starbreeze AB, you can compare the effects of market volatilities on Fractal Gaming and Starbreeze 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 Starbreeze. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fractal Gaming and Starbreeze.
Diversification Opportunities for Fractal Gaming and Starbreeze
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Fractal and Starbreeze is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Fractal Gaming Group and Starbreeze AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Starbreeze 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 Starbreeze. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Starbreeze AB has no effect on the direction of Fractal Gaming i.e., Fractal Gaming and Starbreeze go up and down completely randomly.
Pair Corralation between Fractal Gaming and Starbreeze
Assuming the 90 days trading horizon Fractal Gaming Group is expected to generate 0.29 times more return on investment than Starbreeze. However, Fractal Gaming Group is 3.44 times less risky than Starbreeze. It trades about -0.07 of its potential returns per unit of risk. Starbreeze AB is currently generating about -0.09 per unit of risk. If you would invest 3,390 in Fractal Gaming Group on September 2, 2024 and sell it today you would lose (220.00) from holding Fractal Gaming Group or give up 6.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fractal Gaming Group vs. Starbreeze AB
Performance |
| Timeline |
| Fractal Gaming Group |
| Starbreeze AB |
Fractal Gaming and Starbreeze Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fractal Gaming and Starbreeze
The main advantage of trading using opposite Fractal Gaming and Starbreeze positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fractal Gaming position performs unexpectedly, Starbreeze 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 Starbreeze will offset losses from the drop in Starbreeze'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 |
| Starbreeze vs. MilDef Group AB | Starbreeze vs. Fractal Gaming Group | Starbreeze vs. KABE Group AB | Starbreeze vs. IAR Systems 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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