Correlation Between Filo Mining and Systemair
Can any of the company-specific risk be diversified away by investing in both Filo Mining and Systemair 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 Systemair 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 Systemair AB, you can compare the effects of market volatilities on Filo Mining and Systemair 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 Systemair. Check out your portfolio center. Please also check ongoing floating volatility patterns of Filo Mining and Systemair.
Diversification Opportunities for Filo Mining and Systemair
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Filo and Systemair is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Filo Mining Corp and Systemair AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Systemair 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 Systemair. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Systemair AB has no effect on the direction of Filo Mining i.e., Filo Mining and Systemair go up and down completely randomly.
Pair Corralation between Filo Mining and Systemair
Assuming the 90 days trading horizon Filo Mining Corp is expected to generate 0.54 times more return on investment than Systemair. However, Filo Mining Corp is 1.85 times less risky than Systemair. It trades about 0.1 of its potential returns per unit of risk. Systemair AB is currently generating about 0.05 per unit of risk. If you would invest 24,300 in Filo Mining Corp on August 28, 2024 and sell it today you would earn a total of 1,100 from holding Filo Mining Corp or generate 4.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.67% |
| Values | Daily Returns |
Filo Mining Corp vs. Systemair AB
Performance |
| Timeline |
| Filo Mining Corp |
| Systemair AB |
Filo Mining and Systemair Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Filo Mining and Systemair
The main advantage of trading using opposite Filo Mining and Systemair positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Filo Mining position performs unexpectedly, Systemair 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 Systemair will offset losses from the drop in Systemair's long position.| Filo Mining vs. Invisio Communications AB | Filo Mining vs. JLT Mobile Computers | Filo Mining vs. AVTECH Sweden AB | Filo Mining vs. Viva Wine Group |
| Systemair vs. Lindab International AB | Systemair vs. Nolato AB | Systemair vs. Sweco AB | Systemair vs. Troax Group 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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