Correlation Between Pierce Group and Fractal Gaming
Can any of the company-specific risk be diversified away by investing in both Pierce Group 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 Pierce Group and Fractal Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pierce Group AB and Fractal Gaming Group, you can compare the effects of market volatilities on Pierce Group 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 Pierce Group with a short position of Fractal Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pierce Group and Fractal Gaming.
Diversification Opportunities for Pierce Group and Fractal Gaming
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pierce and Fractal is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Pierce Group 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 Pierce Group 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 Pierce Group 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 Pierce Group i.e., Pierce Group and Fractal Gaming go up and down completely randomly.
Pair Corralation between Pierce Group and Fractal Gaming
Assuming the 90 days trading horizon Pierce Group AB is expected to generate 1.21 times more return on investment than Fractal Gaming. However, Pierce Group is 1.21 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 -0.01 per unit of risk. If you would invest 620.00 in Pierce Group AB on August 25, 2024 and sell it today you would earn a total of 208.00 from holding Pierce Group AB or generate 33.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pierce Group AB vs. Fractal Gaming Group
Performance |
| Timeline |
| Pierce Group AB |
| Fractal Gaming Group |
Pierce Group and Fractal Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pierce Group and Fractal Gaming
The main advantage of trading using opposite Pierce Group and Fractal Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pierce Group 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.| Pierce Group vs. Rugvista Group AB | Pierce Group vs. Karnov Group AB | Pierce Group vs. Nordic Waterproofing Holding | Pierce Group vs. BHG Group 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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