Correlation Between Fractal Gaming and Viva Wine
Can any of the company-specific risk be diversified away by investing in both Fractal Gaming and Viva Wine 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 Viva Wine 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 Viva Wine Group, you can compare the effects of market volatilities on Fractal Gaming and Viva Wine 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 Viva Wine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fractal Gaming and Viva Wine.
Diversification Opportunities for Fractal Gaming and Viva Wine
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fractal and Viva is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Fractal Gaming Group and Viva Wine Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Viva Wine Group 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 Viva Wine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Viva Wine Group has no effect on the direction of Fractal Gaming i.e., Fractal Gaming and Viva Wine go up and down completely randomly.
Pair Corralation between Fractal Gaming and Viva Wine
Assuming the 90 days trading horizon Fractal Gaming Group is expected to under-perform the Viva Wine. In addition to that, Fractal Gaming is 1.41 times more volatile than Viva Wine Group. It trades about -0.02 of its total potential returns per unit of risk. Viva Wine Group is currently generating about 0.03 per unit of volatility. If you would invest 3,707 in Viva Wine Group on September 3, 2024 and sell it today you would earn a total of 243.00 from holding Viva Wine Group or generate 6.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fractal Gaming Group vs. Viva Wine Group
Performance |
| Timeline |
| Fractal Gaming Group |
| Viva Wine Group |
Fractal Gaming and Viva Wine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fractal Gaming and Viva Wine
The main advantage of trading using opposite Fractal Gaming and Viva Wine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fractal Gaming position performs unexpectedly, Viva Wine 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 Viva Wine will offset losses from the drop in Viva Wine'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 |
| Viva Wine vs. Cint Group AB | Viva Wine vs. Nordic Waterproofing Holding | Viva Wine vs. Synsam AB | Viva Wine vs. Inwido 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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