Correlation Between Ambea AB and Fractal Gaming

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

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

Diversification Opportunities for Ambea AB and Fractal Gaming

0.82

Correlation Coefficient

Ambea AB  Fractal Gaming

Very poor diversification

The 3 months correlation between Ambea and Fractal is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Ambea 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 Ambea AB 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 Ambea 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 Ambea AB i.e., Ambea AB and Fractal Gaming go up and down completely randomly.

Pair Corralation between Ambea AB and Fractal Gaming

Assuming the 90 days trading horizon Ambea AB is expected to generate 5.12 times less return on investment than Fractal Gaming. But when comparing it to its historical volatility, Ambea AB is 1.59 times less risky than Fractal Gaming. It trades about 0.1 of its potential returns per unit of risk. Fractal Gaming Group is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest  3,284  in Fractal Gaming Group on April 24, 2025 and sell it today you would earn a total of  1,496  from holding Fractal Gaming Group or generate 45.55% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	98.36%
Values	Daily Returns

Ambea AB  vs.  Fractal Gaming Group

Ambea AB

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Ambea AB are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Ambea AB may actually be approaching a critical reversion point that can send shares even higher in August 2025.

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 25 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Fractal Gaming sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Ambea AB and Fractal Gaming

The main advantage of trading using opposite Ambea AB and Fractal Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ambea AB 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 Ambea 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.