Correlation Between Benton Resources and Filo Mining
Can any of the company-specific risk be diversified away by investing in both Benton Resources 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 Benton Resources and Filo Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Benton Resources and Filo Mining Corp, you can compare the effects of market volatilities on Benton Resources 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 Benton Resources with a short position of Filo Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Benton Resources and Filo Mining.
Diversification Opportunities for Benton Resources and Filo Mining
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Benton and Filo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Benton Resources 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 Benton Resources 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 Benton Resources 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 Benton Resources i.e., Benton Resources and Filo Mining go up and down completely randomly.
Pair Corralation between Benton Resources and Filo Mining
Assuming the 90 days horizon Benton Resources is expected to generate 8.72 times more return on investment than Filo Mining. However, Benton Resources is 8.72 times more volatile than Filo Mining Corp. It trades about 0.03 of its potential returns per unit of risk. Filo Mining Corp is currently generating about 0.14 per unit of risk. If you would invest 13.00 in Benton Resources on September 3, 2024 and sell it today you would lose (8.00) from holding Benton Resources or give up 61.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Benton Resources vs. Filo Mining Corp
Performance |
| Timeline |
| Benton Resources |
| Filo Mining Corp |
Benton Resources and Filo Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Benton Resources and Filo Mining
The main advantage of trading using opposite Benton Resources and Filo Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Benton Resources 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.| Benton Resources vs. Aurelia Metals Limited | Benton Resources vs. Artemis Resources | Benton Resources vs. Ascendant Resources | Benton Resources vs. Altiplano Metals |
| Filo Mining vs. Qubec Nickel Corp | Filo Mining vs. IGO Limited | Filo Mining vs. Avarone Metals | Filo Mining vs. Adriatic Metals PLC |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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