Correlation Between GigaMedia and FRACTAL GAMING
Can any of the company-specific risk be diversified away by investing in both GigaMedia 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 GigaMedia and FRACTAL GAMING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GigaMedia and FRACTAL GAMING GROUP, you can compare the effects of market volatilities on GigaMedia 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 GigaMedia with a short position of FRACTAL GAMING. Check out your portfolio center. Please also check ongoing floating volatility patterns of GigaMedia and FRACTAL GAMING.
Diversification Opportunities for GigaMedia and FRACTAL GAMING
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GigaMedia and FRACTAL is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding GigaMedia 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 GigaMedia 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 GigaMedia 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 GigaMedia i.e., GigaMedia and FRACTAL GAMING go up and down completely randomly.
Pair Corralation between GigaMedia and FRACTAL GAMING
Assuming the 90 days trading horizon GigaMedia is expected to generate 1.3 times more return on investment than FRACTAL GAMING. However, GigaMedia is 1.3 times more volatile than FRACTAL GAMING GROUP. It trades about 0.2 of its potential returns per unit of risk. FRACTAL GAMING GROUP is currently generating about -0.18 per unit of risk. If you would invest 124.00 in GigaMedia on August 31, 2024 and sell it today you would earn a total of 9.00 from holding GigaMedia or generate 7.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GigaMedia vs. FRACTAL GAMING GROUP
Performance |
| Timeline |
| GigaMedia |
| FRACTAL GAMING GROUP |
GigaMedia and FRACTAL GAMING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GigaMedia and FRACTAL GAMING
The main advantage of trading using opposite GigaMedia and FRACTAL GAMING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GigaMedia 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.| GigaMedia vs. JJ SNACK FOODS | GigaMedia vs. MOLSON RS BEVERAGE | GigaMedia vs. Astral Foods Limited | GigaMedia vs. Zijin Mining Group |
| FRACTAL GAMING vs. Zijin Mining Group | FRACTAL GAMING vs. FORMPIPE SOFTWARE AB | FRACTAL GAMING vs. Japan Medical Dynamic | FRACTAL GAMING vs. Jacquet Metal Service |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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