Correlation Between FRACTAL GAMING and FAIR ISAAC

Can any of the company-specific risk be diversified away by investing in both FRACTAL GAMING and FAIR ISAAC 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 FRACTAL GAMING and FAIR ISAAC into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between FRACTAL GAMING GROUP and FAIR ISAAC, you can compare the effects of market volatilities on FRACTAL GAMING and FAIR ISAAC 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 FRACTAL GAMING with a short position of FAIR ISAAC. Check out your portfolio center. Please also check ongoing floating volatility patterns of FRACTAL GAMING and FAIR ISAAC.

Diversification Opportunities for FRACTAL GAMING and FAIR ISAAC

-0.7

Correlation Coefficient

FRACTAL GAMING  FAIR ISAAC

Excellent diversification

The 3 months correlation between FRACTAL and FAIR is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding FRACTAL GAMING GROUP and FAIR ISAAC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FAIR ISAAC and FRACTAL GAMING 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 FRACTAL GAMING GROUP are associated (or correlated) with FAIR ISAAC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FAIR ISAAC has no effect on the direction of FRACTAL GAMING i.e., FRACTAL GAMING and FAIR ISAAC go up and down completely randomly.

Pair Corralation between FRACTAL GAMING and FAIR ISAAC

Assuming the 90 days horizon FRACTAL GAMING is expected to generate 92.93 times less return on investment than FAIR ISAAC. In addition to that, FRACTAL GAMING is 1.29 times more volatile than FAIR ISAAC. It trades about 0.0 of its total potential returns per unit of risk. FAIR ISAAC is currently generating about 0.12 per unit of volatility. If you would invest  93,500  in FAIR ISAAC on October 11, 2024 and sell it today you would earn a total of  92,600  from holding FAIR ISAAC or generate 99.04% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

FRACTAL GAMING GROUP  vs.  FAIR ISAAC

FRACTAL GAMING GROUP

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in FRACTAL GAMING GROUP are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, FRACTAL GAMING may actually be approaching a critical reversion point that can send shares even higher in February 2025.

FAIR ISAAC

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in FAIR ISAAC are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound forward indicators, FAIR ISAAC is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with FRACTAL GAMING and FAIR ISAAC

The main advantage of trading using opposite FRACTAL GAMING and FAIR ISAAC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FRACTAL GAMING position performs unexpectedly, FAIR ISAAC 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 FAIR ISAAC will offset losses from the drop in FAIR ISAAC's long position.

The idea behind FRACTAL GAMING GROUP and FAIR ISAAC pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.