Correlation Between Episurf Medical and Fractal Gaming

Can any of the company-specific risk be diversified away by investing in both Episurf Medical and Fractal Gaming 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 Episurf Medical and Fractal Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Episurf Medical AB and Fractal Gaming Group, you can compare the effects of market volatilities on Episurf Medical and Fractal Gaming 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 Episurf Medical with a short position of Fractal Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Episurf Medical and Fractal Gaming.

Diversification Opportunities for Episurf Medical and Fractal Gaming

-0.04

Correlation Coefficient

Episurf Medical  Fractal Gaming

Good diversification

The 3 months correlation between Episurf and Fractal is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Episurf Medical AB and Fractal Gaming Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fractal Gaming Group and Episurf Medical 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 Episurf Medical AB are associated (or correlated) with Fractal Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fractal Gaming Group has no effect on the direction of Episurf Medical i.e., Episurf Medical and Fractal Gaming go up and down completely randomly.

Pair Corralation between Episurf Medical and Fractal Gaming

Assuming the 90 days trading horizon Episurf Medical is expected to generate 1.78 times less return on investment than Fractal Gaming. In addition to that, Episurf Medical is 3.39 times more volatile than Fractal Gaming Group. It trades about 0.03 of its total potential returns per unit of risk. Fractal Gaming Group is currently generating about 0.21 per unit of volatility. If you would invest  3,260  in Fractal Gaming Group on October 11, 2024 and sell it today you would earn a total of  270.00  from holding Fractal Gaming Group or generate 8.28% return on investment over 90 days.

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

Episurf Medical AB  vs.  Fractal Gaming Group

Episurf Medical AB

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Episurf Medical AB are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain forward indicators, Episurf Medical sustained solid returns over the last few months and may actually be approaching a breakup point.

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 somewhat strong basic indicators, Fractal Gaming is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Episurf Medical and Fractal Gaming

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

The idea behind Episurf Medical AB and Fractal Gaming Group 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.