Correlation Between FRACTAL GAMING and BAKED GAMES

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

Diversification Opportunities for FRACTAL GAMING and BAKED GAMES

-0.73
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between FRACTAL and BAKED is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding FRACTAL GAMING GROUP and BAKED GAMES SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BAKED GAMES SA 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 BAKED GAMES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BAKED GAMES SA has no effect on the direction of FRACTAL GAMING i.e., FRACTAL GAMING and BAKED GAMES go up and down completely randomly.

Pair Corralation between FRACTAL GAMING and BAKED GAMES

Assuming the 90 days horizon FRACTAL GAMING GROUP is expected to generate 0.62 times more return on investment than BAKED GAMES. However, FRACTAL GAMING GROUP is 1.62 times less risky than BAKED GAMES. It trades about 0.33 of its potential returns per unit of risk. BAKED GAMES SA is currently generating about -0.04 per unit of risk. If you would invest  291.00  in FRACTAL GAMING GROUP on April 23, 2025 and sell it today you would earn a total of  113.00  from holding FRACTAL GAMING GROUP or generate 38.83% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

FRACTAL GAMING GROUP  vs.  BAKED GAMES SA

 Performance 
       Timeline  
FRACTAL GAMING GROUP 

Risk-Adjusted Performance

Solid

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in FRACTAL GAMING GROUP are ranked lower than 25 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, FRACTAL GAMING reported solid returns over the last few months and may actually be approaching a breakup point.
BAKED GAMES SA 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days BAKED GAMES SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, BAKED GAMES is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

FRACTAL GAMING and BAKED GAMES Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with FRACTAL GAMING and BAKED GAMES

The main advantage of trading using opposite FRACTAL GAMING and BAKED GAMES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FRACTAL GAMING position performs unexpectedly, BAKED GAMES 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 BAKED GAMES will offset losses from the drop in BAKED GAMES's long position.
The idea behind FRACTAL GAMING GROUP and BAKED GAMES SA 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.

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