Correlation Between SolTech Energy and Fractal Gaming
Can any of the company-specific risk be diversified away by investing in both SolTech Energy 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 SolTech Energy and Fractal Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SolTech Energy Sweden and Fractal Gaming Group, you can compare the effects of market volatilities on SolTech Energy 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 SolTech Energy with a short position of Fractal Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of SolTech Energy and Fractal Gaming.
Diversification Opportunities for SolTech Energy and Fractal Gaming
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SolTech and Fractal is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding SolTech Energy Sweden 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 SolTech Energy 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 SolTech Energy Sweden 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 SolTech Energy i.e., SolTech Energy and Fractal Gaming go up and down completely randomly.
Pair Corralation between SolTech Energy and Fractal Gaming
Assuming the 90 days trading horizon SolTech Energy Sweden is expected to under-perform the Fractal Gaming. In addition to that, SolTech Energy is 1.86 times more volatile than Fractal Gaming Group. It trades about -0.13 of its total potential returns per unit of risk. Fractal Gaming Group is currently generating about 0.33 per unit of volatility. If you would invest 3,284 in Fractal Gaming Group on April 24, 2025 and sell it today you would earn a total of 1,571 from holding Fractal Gaming Group or generate 47.84% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
SolTech Energy Sweden vs. Fractal Gaming Group
Performance |
Timeline |
SolTech Energy Sweden |
Fractal Gaming Group |
SolTech Energy and Fractal Gaming Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SolTech Energy and Fractal Gaming
The main advantage of trading using opposite SolTech Energy and Fractal Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SolTech Energy 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.SolTech Energy vs. Embracer Group AB | SolTech Energy vs. Eolus Vind AB | SolTech Energy vs. Powercell Sweden | SolTech Energy vs. Sinch AB |
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Check out your portfolio center.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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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