Correlation Between FRACTAL GAMING and HEXINDO ADIPERKASA

Can any of the company-specific risk be diversified away by investing in both FRACTAL GAMING and HEXINDO ADIPERKASA 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 HEXINDO ADIPERKASA 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 HEXINDO ADIPERKASA, you can compare the effects of market volatilities on FRACTAL GAMING and HEXINDO ADIPERKASA 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 HEXINDO ADIPERKASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of FRACTAL GAMING and HEXINDO ADIPERKASA.

Diversification Opportunities for FRACTAL GAMING and HEXINDO ADIPERKASA

0.7

Correlation Coefficient

FRACTAL GAMING  HEXINDO ADIPERKASA

Poor diversification

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

Pair Corralation between FRACTAL GAMING and HEXINDO ADIPERKASA

Assuming the 90 days horizon FRACTAL GAMING GROUP is expected to generate 0.89 times more return on investment than HEXINDO ADIPERKASA. However, FRACTAL GAMING GROUP is 1.12 times less risky than HEXINDO ADIPERKASA. It trades about 0.04 of its potential returns per unit of risk. HEXINDO ADIPERKASA is currently generating about 0.01 per unit of risk. If you would invest  207.00  in FRACTAL GAMING GROUP on October 10, 2024 and sell it today you would earn a total of  102.00  from holding FRACTAL GAMING GROUP or generate 49.28% return on investment over 90 days.

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

FRACTAL GAMING GROUP  vs.  HEXINDO ADIPERKASA

FRACTAL GAMING GROUP

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in FRACTAL GAMING GROUP are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, FRACTAL GAMING is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

HEXINDO ADIPERKASA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days HEXINDO ADIPERKASA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with FRACTAL GAMING and HEXINDO ADIPERKASA

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

The idea behind FRACTAL GAMING GROUP and HEXINDO ADIPERKASA 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.