Correlation Between FRACTAL GAMING and Tesla

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

Diversification Opportunities for FRACTAL GAMING and Tesla

-0.84

Correlation Coefficient

FRACTAL GAMING  Tesla

Pay attention - limited upside

The 3 months correlation between FRACTAL and Tesla is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding FRACTAL GAMING GROUP and Tesla Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tesla Inc 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 Tesla. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tesla Inc has no effect on the direction of FRACTAL GAMING i.e., FRACTAL GAMING and Tesla go up and down completely randomly.

Pair Corralation between FRACTAL GAMING and Tesla

Assuming the 90 days horizon FRACTAL GAMING is expected to generate 144.67 times less return on investment than Tesla. But when comparing it to its historical volatility, FRACTAL GAMING GROUP is 2.86 times less risky than Tesla. It trades about 0.0 of its potential returns per unit of risk. Tesla Inc is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest  22,270  in Tesla Inc on October 6, 2024 and sell it today you would earn a total of  16,110  from holding Tesla Inc or generate 72.34% return on investment over 90 days.

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

FRACTAL GAMING GROUP  vs.  Tesla Inc

FRACTAL GAMING GROUP

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days FRACTAL GAMING GROUP has generated negative risk-adjusted returns adding no value to investors with long positions. 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.

Tesla Inc

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Tesla Inc are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, Tesla unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with FRACTAL GAMING and Tesla

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

The idea behind FRACTAL GAMING GROUP and Tesla Inc 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.