Correlation Between FRACTAL GAMING and Sysco Corp

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

Diversification Opportunities for FRACTAL GAMING and Sysco Corp

-0.72

Correlation Coefficient

FRACTAL GAMING  Sysco Corp

Pay attention - limited upside

The 3 months correlation between FRACTAL and Sysco is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding FRACTAL GAMING GROUP and Sysco Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sysco Corp 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 Sysco Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sysco Corp has no effect on the direction of FRACTAL GAMING i.e., FRACTAL GAMING and Sysco Corp go up and down completely randomly.

Pair Corralation between FRACTAL GAMING and Sysco Corp

Assuming the 90 days horizon FRACTAL GAMING GROUP is expected to generate 1.72 times more return on investment than Sysco Corp. However, FRACTAL GAMING is 1.72 times more volatile than Sysco Corp. It trades about 0.13 of its potential returns per unit of risk. Sysco Corp is currently generating about -0.12 per unit of risk. If you would invest  267.00  in FRACTAL GAMING GROUP on December 21, 2024 and sell it today you would earn a total of  55.00  from holding FRACTAL GAMING GROUP or generate 20.6% 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.  Sysco Corp

FRACTAL GAMING GROUP

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in FRACTAL GAMING GROUP are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, FRACTAL GAMING reported solid returns over the last few months and may actually be approaching a breakup point.

Sysco Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Sysco Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with FRACTAL GAMING and Sysco Corp

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

The idea behind FRACTAL GAMING GROUP and Sysco Corp 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.