Correlation Between Filo Mining and TradeDoubler
Can any of the company-specific risk be diversified away by investing in both Filo Mining and TradeDoubler 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 TradeDoubler 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 TradeDoubler AB, you can compare the effects of market volatilities on Filo Mining and TradeDoubler 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 TradeDoubler. Check out your portfolio center. Please also check ongoing floating volatility patterns of Filo Mining and TradeDoubler.
Diversification Opportunities for Filo Mining and TradeDoubler
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Filo and TradeDoubler is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Filo Mining Corp and TradeDoubler AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TradeDoubler 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 TradeDoubler. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TradeDoubler AB has no effect on the direction of Filo Mining i.e., Filo Mining and TradeDoubler go up and down completely randomly.
Pair Corralation between Filo Mining and TradeDoubler
Assuming the 90 days trading horizon Filo Mining is expected to generate 246.17 times less return on investment than TradeDoubler. But when comparing it to its historical volatility, Filo Mining Corp is 2.63 times less risky than TradeDoubler. It trades about 0.0 of its potential returns per unit of risk. TradeDoubler AB is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 342.00 in TradeDoubler AB on October 12, 2024 and sell it today you would earn a total of 40.00 from holding TradeDoubler AB or generate 11.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Filo Mining Corp vs. TradeDoubler AB
Performance |
| Timeline |
| Filo Mining Corp |
| TradeDoubler AB |
Filo Mining and TradeDoubler Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Filo Mining and TradeDoubler
The main advantage of trading using opposite Filo Mining and TradeDoubler positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Filo Mining position performs unexpectedly, TradeDoubler 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 TradeDoubler will offset losses from the drop in TradeDoubler's long position.| Filo Mining vs. Invisio Communications AB | Filo Mining vs. Beowulf Mining PLC | Filo Mining vs. Lundin Mining | Filo Mining vs. Viva Wine Group |
| TradeDoubler vs. Precise Biometrics AB | TradeDoubler vs. BE Group AB | TradeDoubler vs. Eniro AB | TradeDoubler vs. Softronic 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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