Correlation Between Ultimate Games and Fabryki Mebli
Can any of the company-specific risk be diversified away by investing in both Ultimate Games and Fabryki Mebli 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 Ultimate Games and Fabryki Mebli into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ultimate Games SA and Fabryki Mebli Forte, you can compare the effects of market volatilities on Ultimate Games and Fabryki Mebli 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 Ultimate Games with a short position of Fabryki Mebli. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ultimate Games and Fabryki Mebli.
Diversification Opportunities for Ultimate Games and Fabryki Mebli
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ultimate and Fabryki is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Ultimate Games SA and Fabryki Mebli Forte in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fabryki Mebli Forte and Ultimate Games 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 Ultimate Games SA are associated (or correlated) with Fabryki Mebli. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fabryki Mebli Forte has no effect on the direction of Ultimate Games i.e., Ultimate Games and Fabryki Mebli go up and down completely randomly.
Pair Corralation between Ultimate Games and Fabryki Mebli
Assuming the 90 days trading horizon Ultimate Games SA is expected to under-perform the Fabryki Mebli. But the stock apears to be less risky and, when comparing its historical volatility, Ultimate Games SA is 2.47 times less risky than Fabryki Mebli. The stock trades about -0.38 of its potential returns per unit of risk. The Fabryki Mebli Forte is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 2,350 in Fabryki Mebli Forte on September 13, 2024 and sell it today you would earn a total of 280.00 from holding Fabryki Mebli Forte or generate 11.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ultimate Games SA vs. Fabryki Mebli Forte
Performance |
| Timeline |
| Ultimate Games SA |
| Fabryki Mebli Forte |
Ultimate Games and Fabryki Mebli Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ultimate Games and Fabryki Mebli
The main advantage of trading using opposite Ultimate Games and Fabryki Mebli positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ultimate Games position performs unexpectedly, Fabryki Mebli 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 Fabryki Mebli will offset losses from the drop in Fabryki Mebli's long position.| Ultimate Games vs. CD PROJEKT SA | Ultimate Games vs. PLAYWAY SA | Ultimate Games vs. TEN SQUARE GAMES | Ultimate Games vs. CI Games SA |
| Fabryki Mebli vs. Inter Cars SA | Fabryki Mebli vs. Carlson Investments SA | Fabryki Mebli vs. New Tech Venture | Fabryki Mebli vs. Saule Technologies SA |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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