Correlation Between BioInvent International and Fractal Gaming

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

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

Diversification Opportunities for BioInvent International and Fractal Gaming

0.72

Correlation Coefficient

BioInvent International  Fractal Gaming

Poor diversification

The 3 months correlation between BioInvent and Fractal is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding BioInvent International 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 BioInvent International 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 BioInvent International 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 BioInvent International i.e., BioInvent International and Fractal Gaming go up and down completely randomly.

Pair Corralation between BioInvent International and Fractal Gaming

Assuming the 90 days trading horizon BioInvent International is expected to generate 1.12 times less return on investment than Fractal Gaming. In addition to that, BioInvent International is 2.31 times more volatile than Fractal Gaming Group. It trades about 0.12 of its total potential returns per unit of risk. Fractal Gaming Group is currently generating about 0.31 per unit of volatility. If you would invest  3,260  in Fractal Gaming Group on April 23, 2025 and sell it today you would earn a total of  1,425  from holding Fractal Gaming Group or generate 43.71% return on investment over 90 days.

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

BioInvent International AB  vs.  Fractal Gaming Group

BioInvent International

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in BioInvent International AB are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, BioInvent International unveiled solid returns over the last few months and may actually be approaching a breakup point.

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 24 (%) 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 BioInvent International and Fractal Gaming

The main advantage of trading using opposite BioInvent International and Fractal Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioInvent International 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 BioInvent International 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.