Correlation Between Porsche Automobil and FRACTAL GAMING

Can any of the company-specific risk be diversified away by investing in both Porsche Automobil 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 Porsche Automobil and FRACTAL GAMING into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Porsche Automobil Holding and FRACTAL GAMING GROUP, you can compare the effects of market volatilities on Porsche Automobil 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 Porsche Automobil with a short position of FRACTAL GAMING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Porsche Automobil and FRACTAL GAMING.

Diversification Opportunities for Porsche Automobil and FRACTAL GAMING

0.79

Correlation Coefficient

Porsche Automobil  FRACTAL GAMING

Poor diversification

The 3 months correlation between Porsche and FRACTAL is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Porsche Automobil Holding 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 Porsche Automobil 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 Porsche Automobil Holding 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 Porsche Automobil i.e., Porsche Automobil and FRACTAL GAMING go up and down completely randomly.

Pair Corralation between Porsche Automobil and FRACTAL GAMING

Assuming the 90 days trading horizon Porsche Automobil Holding is expected to under-perform the FRACTAL GAMING. But the stock apears to be less risky and, when comparing its historical volatility, Porsche Automobil Holding is 2.2 times less risky than FRACTAL GAMING. The stock trades about -0.04 of its potential returns per unit of risk. The FRACTAL GAMING GROUP is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  216.00  in FRACTAL GAMING GROUP on October 11, 2024 and sell it today you would earn a total of  93.00  from holding FRACTAL GAMING GROUP or generate 43.06% return on investment over 90 days.

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

Porsche Automobil Holding  vs.  FRACTAL GAMING GROUP

Porsche Automobil Holding

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Porsche Automobil Holding has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile 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.

FRACTAL GAMING GROUP

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in FRACTAL GAMING GROUP are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, FRACTAL GAMING may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Porsche Automobil and FRACTAL GAMING

The main advantage of trading using opposite Porsche Automobil and FRACTAL GAMING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Porsche Automobil 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 Porsche Automobil Holding 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.