Correlation Between Thunderful Group and Fractal Gaming
Can any of the company-specific risk be diversified away by investing in both Thunderful 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 Thunderful 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 Thunderful Group AB and Fractal Gaming Group, you can compare the effects of market volatilities on Thunderful 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 Thunderful Group with a short position of Fractal Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thunderful Group and Fractal Gaming.
Diversification Opportunities for Thunderful Group and Fractal Gaming
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Thunderful and Fractal is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Thunderful 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 Thunderful 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 Thunderful 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 Thunderful Group i.e., Thunderful Group and Fractal Gaming go up and down completely randomly.
Pair Corralation between Thunderful Group and Fractal Gaming
Assuming the 90 days trading horizon Thunderful Group AB is expected to under-perform the Fractal Gaming. In addition to that, Thunderful Group is 3.83 times more volatile than Fractal Gaming Group. It trades about -0.27 of its total potential returns per unit of risk. Fractal Gaming Group is currently generating about -0.17 per unit of volatility. If you would invest 3,360 in Fractal Gaming Group on August 29, 2024 and sell it today you would lose (180.00) from holding Fractal Gaming Group or give up 5.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thunderful Group AB vs. Fractal Gaming Group
Performance |
| Timeline |
| Thunderful Group |
| Fractal Gaming Group |
Thunderful Group and Fractal Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thunderful Group and Fractal Gaming
The main advantage of trading using opposite Thunderful Group and Fractal Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thunderful 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.| Thunderful Group vs. Stillfront Group AB | Thunderful Group vs. Embracer Group AB | Thunderful Group vs. Enad Global 7 | Thunderful Group vs. Kambi Group PLC |
| 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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