Correlation Between Beazley PLC and FRACTAL GAMING
Can any of the company-specific risk be diversified away by investing in both Beazley PLC 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 Beazley PLC and FRACTAL GAMING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Beazley PLC and FRACTAL GAMING GROUP, you can compare the effects of market volatilities on Beazley PLC 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 Beazley PLC with a short position of FRACTAL GAMING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beazley PLC and FRACTAL GAMING.
Diversification Opportunities for Beazley PLC and FRACTAL GAMING
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Beazley and FRACTAL is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Beazley PLC 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 Beazley PLC 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 Beazley PLC 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 Beazley PLC i.e., Beazley PLC and FRACTAL GAMING go up and down completely randomly.
Pair Corralation between Beazley PLC and FRACTAL GAMING
Assuming the 90 days horizon Beazley PLC is expected to under-perform the FRACTAL GAMING. In addition to that, Beazley PLC is 1.11 times more volatile than FRACTAL GAMING GROUP. It trades about -0.01 of its total potential returns per unit of risk. FRACTAL GAMING GROUP is currently generating about 0.24 per unit of volatility. If you would invest 281.00 in FRACTAL GAMING GROUP on October 12, 2024 and sell it today you would earn a total of 28.00 from holding FRACTAL GAMING GROUP or generate 9.96% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Beazley PLC vs. FRACTAL GAMING GROUP
Performance |
Timeline |
Beazley PLC |
FRACTAL GAMING GROUP |
Beazley PLC and FRACTAL GAMING Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Beazley PLC and FRACTAL GAMING
The main advantage of trading using opposite Beazley PLC and FRACTAL GAMING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beazley PLC 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.Beazley PLC vs. FRACTAL GAMING GROUP | Beazley PLC vs. GigaMedia | Beazley PLC vs. Media and Games | Beazley PLC vs. SLR Investment Corp |
FRACTAL GAMING vs. COFCO Joycome Foods | FRACTAL GAMING vs. LPKF Laser Electronics | FRACTAL GAMING vs. SENECA FOODS A | FRACTAL GAMING vs. AOI Electronics Co |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
Transaction History View history of all your transactions and understand their impact on performance | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
Content Syndication Quickly integrate customizable finance content to your own investment portal | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Equity Valuation Check real value of public entities based on technical and fundamental data |