Correlation Between Tokyu Construction and FRACTAL GAMING
Can any of the company-specific risk be diversified away by investing in both Tokyu Construction 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 Tokyu Construction and FRACTAL GAMING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tokyu Construction Co and FRACTAL GAMING GROUP, you can compare the effects of market volatilities on Tokyu Construction 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 Tokyu Construction with a short position of FRACTAL GAMING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tokyu Construction and FRACTAL GAMING.
Diversification Opportunities for Tokyu Construction and FRACTAL GAMING
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Tokyu and FRACTAL is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Tokyu Construction Co 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 Tokyu Construction 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 Tokyu Construction Co 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 Tokyu Construction i.e., Tokyu Construction and FRACTAL GAMING go up and down completely randomly.
Pair Corralation between Tokyu Construction and FRACTAL GAMING
Assuming the 90 days horizon Tokyu Construction Co is expected to under-perform the FRACTAL GAMING. But the stock apears to be less risky and, when comparing its historical volatility, Tokyu Construction Co is 1.89 times less risky than FRACTAL GAMING. The stock trades about -0.02 of its potential returns per unit of risk. The FRACTAL GAMING GROUP is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 308.00 in FRACTAL GAMING GROUP on October 16, 2024 and sell it today you would lose (5.00) from holding FRACTAL GAMING GROUP or give up 1.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tokyu Construction Co vs. FRACTAL GAMING GROUP
Performance |
| Timeline |
| Tokyu Construction |
| FRACTAL GAMING GROUP |
Tokyu Construction and FRACTAL GAMING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tokyu Construction and FRACTAL GAMING
The main advantage of trading using opposite Tokyu Construction and FRACTAL GAMING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tokyu Construction 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.| Tokyu Construction vs. Stag Industrial | Tokyu Construction vs. FRACTAL GAMING GROUP | Tokyu Construction vs. Media and Games | Tokyu Construction vs. International Game Technology |
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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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