Correlation Between FRACTAL GAMING and MIRAMAR HOTEL

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

Diversification Opportunities for FRACTAL GAMING and MIRAMAR HOTEL

-0.17

Correlation Coefficient

FRACTAL GAMING  MIRAMAR HOTEL

Good diversification

The 3 months correlation between FRACTAL and MIRAMAR is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding FRACTAL GAMING GROUP and MIRAMAR HOTEL INV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MIRAMAR HOTEL INV 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 MIRAMAR HOTEL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MIRAMAR HOTEL INV has no effect on the direction of FRACTAL GAMING i.e., FRACTAL GAMING and MIRAMAR HOTEL go up and down completely randomly.

Pair Corralation between FRACTAL GAMING and MIRAMAR HOTEL

Assuming the 90 days horizon FRACTAL GAMING GROUP is expected to generate 3.94 times more return on investment than MIRAMAR HOTEL. However, FRACTAL GAMING is 3.94 times more volatile than MIRAMAR HOTEL INV. It trades about 0.29 of its potential returns per unit of risk. MIRAMAR HOTEL INV is currently generating about 0.17 per unit of risk. If you would invest  276.00  in FRACTAL GAMING GROUP on October 11, 2024 and sell it today you would earn a total of  33.00  from holding FRACTAL GAMING GROUP or generate 11.96% return on investment over 90 days.

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

FRACTAL GAMING GROUP  vs.  MIRAMAR HOTEL INV

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.

MIRAMAR HOTEL INV

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in MIRAMAR HOTEL INV are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound essential indicators, MIRAMAR HOTEL 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 MIRAMAR HOTEL

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

The idea behind FRACTAL GAMING GROUP and MIRAMAR HOTEL INV 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.