Correlation Between Filo Mining and Media
Can any of the company-specific risk be diversified away by investing in both Filo Mining and Media 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 Media 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 Media and Games, you can compare the effects of market volatilities on Filo Mining and Media 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 Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Filo Mining and Media.
Diversification Opportunities for Filo Mining and Media
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Filo and Media is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Filo Mining Corp and Media and Games in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Media and Games 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 Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Media and Games has no effect on the direction of Filo Mining i.e., Filo Mining and Media go up and down completely randomly.
Pair Corralation between Filo Mining and Media
Assuming the 90 days trading horizon Filo Mining is expected to generate 3.26 times less return on investment than Media. But when comparing it to its historical volatility, Filo Mining Corp is 1.78 times less risky than Media. It trades about 0.07 of its potential returns per unit of risk. Media and Games is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,192 in Media and Games on September 14, 2024 and sell it today you would earn a total of 2,703 from holding Media and Games or generate 226.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Filo Mining Corp vs. Media and Games
Performance |
| Timeline |
| Filo Mining Corp |
| Media and Games |
Filo Mining and Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Filo Mining and Media
The main advantage of trading using opposite Filo Mining and Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Filo Mining position performs unexpectedly, Media 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 Media will offset losses from the drop in Media'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 |
| Media vs. Embracer Group AB | Media vs. Samhllsbyggnadsbolaget i Norden | Media vs. Sinch AB | Media vs. Zaptec AS |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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