Correlation Between FRACTAL GAMING and OTP Bank

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

Diversification Opportunities for FRACTAL GAMING and OTP Bank

-0.71

Correlation Coefficient

FRACTAL GAMING  OTP Bank

Pay attention - limited upside

The 3 months correlation between FRACTAL and OTP is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding FRACTAL GAMING GROUP and OTP Bank Nyrt in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OTP Bank Nyrt 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 OTP Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OTP Bank Nyrt has no effect on the direction of FRACTAL GAMING i.e., FRACTAL GAMING and OTP Bank go up and down completely randomly.

Pair Corralation between FRACTAL GAMING and OTP Bank

Assuming the 90 days horizon FRACTAL GAMING GROUP is expected to generate 1.58 times more return on investment than OTP Bank. However, FRACTAL GAMING is 1.58 times more volatile than OTP Bank Nyrt. It trades about 0.24 of its potential returns per unit of risk. OTP Bank Nyrt is currently generating about -0.07 per unit of risk. 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	Weak
Accuracy	100.0%
Values	Daily Returns

FRACTAL GAMING GROUP  vs.  OTP Bank Nyrt

FRACTAL GAMING GROUP

Risk-Adjusted Performance

3 of 100

Modest

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.

OTP Bank Nyrt

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in OTP Bank Nyrt are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, OTP Bank may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with FRACTAL GAMING and OTP Bank

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

The idea behind FRACTAL GAMING GROUP and OTP Bank Nyrt 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.

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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.