Correlation Between Fractal Gaming and MAG Interactive

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

Diversification Opportunities for Fractal Gaming and MAG Interactive

0.0

Correlation Coefficient

Fractal Gaming  MAG Interactive

Pay attention - limited upside

The 3 months correlation between Fractal and MAG is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Fractal Gaming Group and MAG Interactive AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MAG Interactive AB 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 MAG Interactive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MAG Interactive AB has no effect on the direction of Fractal Gaming i.e., Fractal Gaming and MAG Interactive go up and down completely randomly.

Pair Corralation between Fractal Gaming and MAG Interactive

If you would invest  3,480  in Fractal Gaming Group on December 31, 2024 and sell it today you would earn a total of  360.00  from holding Fractal Gaming Group or generate 10.34% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.61%
Values	Daily Returns

Fractal Gaming Group  vs.  MAG Interactive AB

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 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, Fractal Gaming may actually be approaching a critical reversion point that can send shares even higher in May 2025.

MAG Interactive AB

Risk-Adjusted Performance

Weak

Over the last 90 days MAG Interactive AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, MAG Interactive is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Fractal Gaming and MAG Interactive

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

The idea behind Fractal Gaming Group and MAG Interactive AB 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..