Correlation Between Beowulf Mining and Footway Group
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By analyzing existing cross correlation between Beowulf Mining PLC and Footway Group AB, you can compare the effects of market volatilities on Beowulf Mining and Footway 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 Beowulf Mining with a short position of Footway Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beowulf Mining and Footway Group.
Diversification Opportunities for Beowulf Mining and Footway Group
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Beowulf and Footway is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Beowulf Mining PLC and Footway Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Footway Group AB and Beowulf Mining 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 Beowulf Mining PLC are associated (or correlated) with Footway Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Footway Group AB has no effect on the direction of Beowulf Mining i.e., Beowulf Mining and Footway Group go up and down completely randomly.
Pair Corralation between Beowulf Mining and Footway Group
Assuming the 90 days trading horizon Beowulf Mining PLC is expected to under-perform the Footway Group. In addition to that, Beowulf Mining is 1.3 times more volatile than Footway Group AB. It trades about -0.19 of its total potential returns per unit of risk. Footway Group AB is currently generating about -0.16 per unit of volatility. If you would invest 3,600 in Footway Group AB on August 29, 2024 and sell it today you would lose (420.00) from holding Footway Group AB or give up 11.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Beowulf Mining PLC vs. Footway Group AB
Performance |
| Timeline |
| Beowulf Mining PLC |
| Footway Group AB |
Beowulf Mining and Footway Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beowulf Mining and Footway Group
The main advantage of trading using opposite Beowulf Mining and Footway Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beowulf Mining position performs unexpectedly, Footway 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 Footway Group will offset losses from the drop in Footway Group's long position.| Beowulf Mining vs. AstraZeneca PLC | Beowulf Mining vs. Investor AB ser | Beowulf Mining vs. Investor AB ser | Beowulf Mining vs. Atlas Copco AB |
| Footway Group vs. SolTech Energy Sweden | Footway Group vs. Lohilo Foods AB | Footway Group vs. Sdiptech AB | Footway Group vs. Upsales Technology 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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