Correlation Between Upsales Technology and Fractal Gaming
Can any of the company-specific risk be diversified away by investing in both Upsales Technology 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 Upsales Technology and Fractal Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Upsales Technology AB and Fractal Gaming Group, you can compare the effects of market volatilities on Upsales Technology 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 Upsales Technology with a short position of Fractal Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Upsales Technology and Fractal Gaming.
Diversification Opportunities for Upsales Technology and Fractal Gaming
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Upsales and Fractal is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Upsales Technology 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 Upsales Technology 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 Upsales Technology 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 Upsales Technology i.e., Upsales Technology and Fractal Gaming go up and down completely randomly.
Pair Corralation between Upsales Technology and Fractal Gaming
Assuming the 90 days trading horizon Upsales Technology AB is expected to under-perform the Fractal Gaming. But the stock apears to be less risky and, when comparing its historical volatility, Upsales Technology AB is 1.83 times less risky than Fractal Gaming. The stock trades about -0.11 of its potential returns per unit of risk. The Fractal Gaming Group is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 3,600 in Fractal Gaming Group on November 5, 2024 and sell it today you would lose (70.00) from holding Fractal Gaming Group or give up 1.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Upsales Technology AB vs. Fractal Gaming Group
Performance |
| Timeline |
| Upsales Technology |
| Fractal Gaming Group |
Upsales Technology and Fractal Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Upsales Technology and Fractal Gaming
The main advantage of trading using opposite Upsales Technology and Fractal Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Upsales Technology 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.| Upsales Technology vs. Lime Technologies AB | Upsales Technology vs. FormPipe Software AB | Upsales Technology vs. Surgical Science Sweden | Upsales Technology vs. Vitec Software Group |
| 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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