Correlation Between Invisio Communications and Fractal Gaming
Can any of the company-specific risk be diversified away by investing in both Invisio Communications 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 Invisio Communications and Fractal Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Invisio Communications AB and Fractal Gaming Group, you can compare the effects of market volatilities on Invisio Communications 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 Invisio Communications with a short position of Fractal Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invisio Communications and Fractal Gaming.
Diversification Opportunities for Invisio Communications and Fractal Gaming
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Invisio and Fractal is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Invisio Communications AB 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 Invisio Communications 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 Invisio Communications AB 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 Invisio Communications i.e., Invisio Communications and Fractal Gaming go up and down completely randomly.
Pair Corralation between Invisio Communications and Fractal Gaming
Assuming the 90 days trading horizon Invisio Communications AB is expected to generate 1.48 times more return on investment than Fractal Gaming. However, Invisio Communications is 1.48 times more volatile than Fractal Gaming Group. It trades about 0.05 of its potential returns per unit of risk. Fractal Gaming Group is currently generating about -0.17 per unit of risk. If you would invest 27,100 in Invisio Communications AB on August 29, 2024 and sell it today you would earn a total of 450.00 from holding Invisio Communications AB or generate 1.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Invisio Communications AB vs. Fractal Gaming Group
Performance |
| Timeline |
| Invisio Communications |
| Fractal Gaming Group |
Invisio Communications and Fractal Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Invisio Communications and Fractal Gaming
The main advantage of trading using opposite Invisio Communications and Fractal Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invisio Communications 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.| Invisio Communications vs. Troax Group AB | Invisio Communications vs. NIBE Industrier AB | Invisio Communications vs. Hexatronic Group AB | Invisio Communications vs. Bufab Holding AB |
| Fractal Gaming vs. Media and Games | Fractal Gaming vs. Cint Group AB | Fractal Gaming vs. Thunderful Group AB | Fractal Gaming vs. Enad Global 7 |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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