Correlation Between Filo Mining and Awardit AB
Can any of the company-specific risk be diversified away by investing in both Filo Mining and Awardit AB 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 Filo Mining and Awardit AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Filo Mining Corp and Awardit AB, you can compare the effects of market volatilities on Filo Mining and Awardit AB 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 Filo Mining with a short position of Awardit AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Filo Mining and Awardit AB.
Diversification Opportunities for Filo Mining and Awardit AB
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Filo and Awardit is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Filo Mining Corp and Awardit AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Awardit AB and Filo 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 Filo Mining Corp are associated (or correlated) with Awardit AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Awardit AB has no effect on the direction of Filo Mining i.e., Filo Mining and Awardit AB go up and down completely randomly.
Pair Corralation between Filo Mining and Awardit AB
Assuming the 90 days trading horizon Filo Mining Corp is expected to generate 0.87 times more return on investment than Awardit AB. However, Filo Mining Corp is 1.15 times less risky than Awardit AB. It trades about 0.05 of its potential returns per unit of risk. Awardit AB is currently generating about 0.02 per unit of risk. If you would invest 16,400 in Filo Mining Corp on August 26, 2024 and sell it today you would earn a total of 9,350 from holding Filo Mining Corp or generate 57.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.4% |
| Values | Daily Returns |
Filo Mining Corp vs. Awardit AB
Performance |
| Timeline |
| Filo Mining Corp |
| Awardit AB |
Filo Mining and Awardit AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Filo Mining and Awardit AB
The main advantage of trading using opposite Filo Mining and Awardit AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Filo Mining position performs unexpectedly, Awardit AB 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 Awardit AB will offset losses from the drop in Awardit AB's long position.| Filo Mining vs. Lohilo Foods AB | Filo Mining vs. Addtech AB | Filo Mining vs. Vitec Software Group | Filo Mining vs. AVTECH Sweden AB |
| Awardit AB vs. Nitro Games Oyj | Awardit AB vs. Vitec Software Group | Awardit AB vs. Viva Wine Group | Awardit AB vs. Corline Biomedical 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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