Correlation Between Fragbite Group and Intellego Technologies

Can any of the company-specific risk be diversified away by investing in both Fragbite Group and Intellego Technologies 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 Fragbite Group and Intellego Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Fragbite Group and Intellego Technologies

0.79

Correlation Coefficient

Fragbite Group  Intellego Technologies

Poor diversification

The 3 months correlation between Fragbite and Intellego is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Fragbite Group AB and Intellego Technologies AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intellego Technologies and Fragbite Group 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 Fragbite Group AB are associated (or correlated) with Intellego Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intellego Technologies has no effect on the direction of Fragbite Group i.e., Fragbite Group and Intellego Technologies go up and down completely randomly.

Pair Corralation between Fragbite Group and Intellego Technologies

Assuming the 90 days trading horizon Fragbite Group AB is expected to generate 4.09 times more return on investment than Intellego Technologies. However, Fragbite Group is 4.09 times more volatile than Intellego Technologies AB. It trades about 0.11 of its potential returns per unit of risk. Intellego Technologies AB is currently generating about 0.3 per unit of risk. If you would invest  668.00  in Fragbite Group AB on May 11, 2025 and sell it today you would earn a total of  457.00  from holding Fragbite Group AB or generate 68.41% return on investment over 90 days.

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

Fragbite Group AB  vs.  Intellego Technologies AB

Fragbite Group AB

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Fragbite Group AB are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Fragbite Group unveiled solid returns over the last few months and may actually be approaching a breakup point.

Intellego Technologies

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Intellego Technologies AB are ranked lower than 23 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Intellego Technologies unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Fragbite Group and Intellego Technologies

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

The idea behind Fragbite Group AB and Intellego Technologies 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.