Correlation Between AcadeMedia and Filo Mining
Can any of the company-specific risk be diversified away by investing in both AcadeMedia and Filo Mining 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 AcadeMedia and Filo Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AcadeMedia AB and Filo Mining Corp, you can compare the effects of market volatilities on AcadeMedia and Filo Mining 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 AcadeMedia with a short position of Filo Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of AcadeMedia and Filo Mining.
Diversification Opportunities for AcadeMedia and Filo Mining
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AcadeMedia and Filo is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding AcadeMedia AB and Filo Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Filo Mining Corp and AcadeMedia 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 AcadeMedia AB are associated (or correlated) with Filo Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Filo Mining Corp has no effect on the direction of AcadeMedia i.e., AcadeMedia and Filo Mining go up and down completely randomly.
Pair Corralation between AcadeMedia and Filo Mining
Assuming the 90 days trading horizon AcadeMedia is expected to generate 1.69 times less return on investment than Filo Mining. But when comparing it to its historical volatility, AcadeMedia AB is 1.45 times less risky than Filo Mining. It trades about 0.08 of its potential returns per unit of risk. Filo Mining Corp is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 16,200 in Filo Mining Corp on November 3, 2024 and sell it today you would earn a total of 8,550 from holding Filo Mining Corp or generate 52.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 96.34% |
| Values | Daily Returns |
AcadeMedia AB vs. Filo Mining Corp
Performance |
| Timeline |
| AcadeMedia AB |
| Filo Mining Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
AcadeMedia and Filo Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AcadeMedia and Filo Mining
The main advantage of trading using opposite AcadeMedia and Filo Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AcadeMedia position performs unexpectedly, Filo Mining 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 Filo Mining will offset losses from the drop in Filo Mining's long position.| AcadeMedia vs. Inwido AB | AcadeMedia vs. Alimak Hek Group | AcadeMedia vs. Dometic Group AB | AcadeMedia vs. Byggmax Group AB |
| Filo Mining vs. Boliden AB | Filo Mining vs. Leading Edge Materials | Filo Mining vs. AAC Clyde Space | Filo Mining vs. Tele2 AB |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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