Correlation Between Filo Mining and Axfood AB
Can any of the company-specific risk be diversified away by investing in both Filo Mining and Axfood 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 Axfood 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 Axfood AB, you can compare the effects of market volatilities on Filo Mining and Axfood 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 Axfood AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Filo Mining and Axfood AB.
Diversification Opportunities for Filo Mining and Axfood AB
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Filo and Axfood is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Filo Mining Corp and Axfood AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axfood 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 Axfood AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axfood AB has no effect on the direction of Filo Mining i.e., Filo Mining and Axfood AB go up and down completely randomly.
Pair Corralation between Filo Mining and Axfood AB
Assuming the 90 days trading horizon Filo Mining Corp is expected to generate 1.67 times more return on investment than Axfood AB. However, Filo Mining is 1.67 times more volatile than Axfood AB. It trades about 0.07 of its potential returns per unit of risk. Axfood AB is currently generating about -0.02 per unit of risk. If you would invest 17,200 in Filo Mining Corp on September 14, 2024 and sell it today you would earn a total of 7,400 from holding Filo Mining Corp or generate 43.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Filo Mining Corp vs. Axfood AB
Performance |
| Timeline |
| Filo Mining Corp |
| Axfood AB |
Filo Mining and Axfood AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Filo Mining and Axfood AB
The main advantage of trading using opposite Filo Mining and Axfood AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Filo Mining position performs unexpectedly, Axfood 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 Axfood AB will offset losses from the drop in Axfood AB's long position.| Filo Mining vs. Boliden AB | Filo Mining vs. KABE Group AB | Filo Mining vs. IAR Systems Group | Filo Mining vs. Mekonomen AB |
| Axfood AB vs. Castellum AB | Axfood AB vs. Tele2 AB | Axfood AB vs. Investor AB ser | Axfood AB vs. Kinnevik Investment 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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