Correlation Between Fuji Media and FRACTAL GAMING
Can any of the company-specific risk be diversified away by investing in both Fuji Media and FRACTAL GAMING 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 Fuji Media and FRACTAL GAMING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fuji Media Holdings and FRACTAL GAMING GROUP, you can compare the effects of market volatilities on Fuji Media and FRACTAL GAMING 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 Fuji Media with a short position of FRACTAL GAMING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fuji Media and FRACTAL GAMING.
Diversification Opportunities for Fuji Media and FRACTAL GAMING
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fuji and FRACTAL is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Fuji Media Holdings and FRACTAL GAMING GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FRACTAL GAMING GROUP and Fuji Media 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 Fuji Media Holdings are associated (or correlated) with FRACTAL GAMING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FRACTAL GAMING GROUP has no effect on the direction of Fuji Media i.e., Fuji Media and FRACTAL GAMING go up and down completely randomly.
Pair Corralation between Fuji Media and FRACTAL GAMING
Assuming the 90 days horizon Fuji Media is expected to generate 4.55 times less return on investment than FRACTAL GAMING. In addition to that, Fuji Media is 1.17 times more volatile than FRACTAL GAMING GROUP. It trades about 0.03 of its total potential returns per unit of risk. FRACTAL GAMING GROUP is currently generating about 0.16 per unit of volatility. If you would invest 267.00 in FRACTAL GAMING GROUP on October 24, 2024 and sell it today you would earn a total of 18.00 from holding FRACTAL GAMING GROUP or generate 6.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
Fuji Media Holdings vs. FRACTAL GAMING GROUP
Performance |
| Timeline |
| Fuji Media Holdings |
| FRACTAL GAMING GROUP |
Fuji Media and FRACTAL GAMING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fuji Media and FRACTAL GAMING
The main advantage of trading using opposite Fuji Media and FRACTAL GAMING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fuji Media position performs unexpectedly, FRACTAL GAMING 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 FRACTAL GAMING will offset losses from the drop in FRACTAL GAMING's long position.| Fuji Media vs. ECHO INVESTMENT ZY | Fuji Media vs. SLR Investment Corp | Fuji Media vs. Lendlease Group | Fuji Media vs. WILLIS LEASE FIN |
| FRACTAL GAMING vs. GOLD ROAD RES | FRACTAL GAMING vs. China Eastern Airlines | FRACTAL GAMING vs. BII Railway Transportation | FRACTAL GAMING vs. Nishi Nippon Railroad Co |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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