Correlation Between Fractal Gaming and Nimbus Group

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

Diversification Opportunities for Fractal Gaming and Nimbus Group

0.21

Correlation Coefficient

Fractal Gaming  Nimbus Group

Modest diversification

The 3 months correlation between Fractal and Nimbus is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Fractal Gaming Group and Nimbus Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nimbus Group AB 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 Nimbus Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nimbus Group AB has no effect on the direction of Fractal Gaming i.e., Fractal Gaming and Nimbus Group go up and down completely randomly.

Pair Corralation between Fractal Gaming and Nimbus Group

Assuming the 90 days trading horizon Fractal Gaming Group is expected to generate 0.72 times more return on investment than Nimbus Group. However, Fractal Gaming Group is 1.38 times less risky than Nimbus Group. It trades about 0.31 of its potential returns per unit of risk. Nimbus Group AB is currently generating about 0.01 per unit of risk. If you would invest  3,134  in Fractal Gaming Group on April 22, 2025 and sell it today you would earn a total of  1,361  from holding Fractal Gaming Group or generate 43.43% return on investment over 90 days.

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

Fractal Gaming Group  vs.  Nimbus Group AB

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.

Nimbus Group AB

Risk-Adjusted Performance

Very Weak

Over the last 90 days Nimbus Group AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Nimbus Group is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Fractal Gaming and Nimbus Group

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

The idea behind Fractal Gaming Group and Nimbus Group AB 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.