Correlation Between ULTRA CLEAN and FRACTAL GAMING
Can any of the company-specific risk be diversified away by investing in both ULTRA CLEAN 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 ULTRA CLEAN and FRACTAL GAMING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ULTRA CLEAN HLDGS and FRACTAL GAMING GROUP, you can compare the effects of market volatilities on ULTRA CLEAN 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 ULTRA CLEAN with a short position of FRACTAL GAMING. Check out your portfolio center. Please also check ongoing floating volatility patterns of ULTRA CLEAN and FRACTAL GAMING.
Diversification Opportunities for ULTRA CLEAN and FRACTAL GAMING
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between ULTRA and FRACTAL is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding ULTRA CLEAN HLDGS 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 ULTRA CLEAN 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 ULTRA CLEAN HLDGS 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 ULTRA CLEAN i.e., ULTRA CLEAN and FRACTAL GAMING go up and down completely randomly.
Pair Corralation between ULTRA CLEAN and FRACTAL GAMING
Assuming the 90 days trading horizon ULTRA CLEAN HLDGS is expected to generate 2.06 times more return on investment than FRACTAL GAMING. However, ULTRA CLEAN is 2.06 times more volatile than FRACTAL GAMING GROUP. It trades about 0.31 of its potential returns per unit of risk. FRACTAL GAMING GROUP is currently generating about -0.26 per unit of risk. If you would invest 3,060 in ULTRA CLEAN HLDGS on September 1, 2024 and sell it today you would earn a total of 560.00 from holding ULTRA CLEAN HLDGS or generate 18.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ULTRA CLEAN HLDGS vs. FRACTAL GAMING GROUP
Performance |
| Timeline |
| ULTRA CLEAN HLDGS |
| FRACTAL GAMING GROUP |
ULTRA CLEAN and FRACTAL GAMING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ULTRA CLEAN and FRACTAL GAMING
The main advantage of trading using opposite ULTRA CLEAN and FRACTAL GAMING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ULTRA CLEAN 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.| ULTRA CLEAN vs. DEVRY EDUCATION GRP | ULTRA CLEAN vs. WILLIS LEASE FIN | ULTRA CLEAN vs. G8 EDUCATION | ULTRA CLEAN vs. Grand Canyon Education |
| FRACTAL GAMING vs. Avanos Medical | FRACTAL GAMING vs. ONWARD MEDICAL BV | FRACTAL GAMING vs. IMAGIN MEDICAL INC | FRACTAL GAMING vs. EAT WELL INVESTMENT |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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