Correlation Between CanAlaska Uranium and Filo Mining
Can any of the company-specific risk be diversified away by investing in both CanAlaska Uranium 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 CanAlaska Uranium and Filo Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CanAlaska Uranium and Filo Mining Corp, you can compare the effects of market volatilities on CanAlaska Uranium 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 CanAlaska Uranium with a short position of Filo Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of CanAlaska Uranium and Filo Mining.
Diversification Opportunities for CanAlaska Uranium and Filo Mining
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between CanAlaska and Filo is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding CanAlaska Uranium 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 CanAlaska Uranium 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 CanAlaska Uranium 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 CanAlaska Uranium i.e., CanAlaska Uranium and Filo Mining go up and down completely randomly.
Pair Corralation between CanAlaska Uranium and Filo Mining
Assuming the 90 days horizon CanAlaska Uranium is expected to generate 3.82 times more return on investment than Filo Mining. However, CanAlaska Uranium is 3.82 times more volatile than Filo Mining Corp. It trades about -0.01 of its potential returns per unit of risk. Filo Mining Corp is currently generating about -0.13 per unit of risk. If you would invest 56.00 in CanAlaska Uranium on August 28, 2024 and sell it today you would lose (2.00) from holding CanAlaska Uranium or give up 3.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CanAlaska Uranium vs. Filo Mining Corp
Performance |
| Timeline |
| CanAlaska Uranium |
| Filo Mining Corp |
CanAlaska Uranium and Filo Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CanAlaska Uranium and Filo Mining
The main advantage of trading using opposite CanAlaska Uranium and Filo Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CanAlaska Uranium 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.| CanAlaska Uranium vs. Forum Energy Metals | CanAlaska Uranium vs. Namibia Critical Metals | CanAlaska Uranium vs. Themac Resources Group | CanAlaska Uranium vs. Pasinex Resources Limited |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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