Correlation Between FRACTAL GAMING and Magna International

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

Diversification Opportunities for FRACTAL GAMING and Magna International

0.93

Correlation Coefficient

FRACTAL GAMING  Magna International

Almost no diversification

The 3 months correlation between FRACTAL and Magna is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding FRACTAL GAMING GROUP and Magna International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Magna International 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 Magna International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Magna International has no effect on the direction of FRACTAL GAMING i.e., FRACTAL GAMING and Magna International go up and down completely randomly.

Pair Corralation between FRACTAL GAMING and Magna International

Assuming the 90 days horizon FRACTAL GAMING GROUP is expected to generate 0.86 times more return on investment than Magna International. However, FRACTAL GAMING GROUP is 1.16 times less risky than Magna International. It trades about 0.3 of its potential returns per unit of risk. Magna International is currently generating about 0.21 per unit of risk. If you would invest  294.00  in FRACTAL GAMING GROUP on April 24, 2025 and sell it today you would earn a total of  104.00  from holding FRACTAL GAMING GROUP or generate 35.37% return on investment over 90 days.

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

FRACTAL GAMING GROUP  vs.  Magna International

FRACTAL GAMING GROUP

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in FRACTAL GAMING GROUP are ranked lower than 23 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, FRACTAL GAMING reported solid returns over the last few months and may actually be approaching a breakup point.

Magna International

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Magna International are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Magna International reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with FRACTAL GAMING and Magna International

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

The idea behind FRACTAL GAMING GROUP and Magna International 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.