Correlation Between Filo Mining and Zwipe AS
Can any of the company-specific risk be diversified away by investing in both Filo Mining and Zwipe AS 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 Zwipe AS 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 Zwipe AS, you can compare the effects of market volatilities on Filo Mining and Zwipe AS 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 Zwipe AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Filo Mining and Zwipe AS.
Diversification Opportunities for Filo Mining and Zwipe AS
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Filo and Zwipe is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Filo Mining Corp and Zwipe AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zwipe AS 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 Zwipe AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zwipe AS has no effect on the direction of Filo Mining i.e., Filo Mining and Zwipe AS go up and down completely randomly.
Pair Corralation between Filo Mining and Zwipe AS
Assuming the 90 days trading horizon Filo Mining Corp is expected to generate 0.28 times more return on investment than Zwipe AS. However, Filo Mining Corp is 3.51 times less risky than Zwipe AS. It trades about 0.08 of its potential returns per unit of risk. Zwipe AS is currently generating about -0.07 per unit of risk. If you would invest 18,800 in Filo Mining Corp on September 3, 2024 and sell it today you would earn a total of 6,350 from holding Filo Mining Corp or generate 33.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Filo Mining Corp vs. Zwipe AS
Performance |
| Timeline |
| Filo Mining Corp |
| Zwipe AS |
Filo Mining and Zwipe AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Filo Mining and Zwipe AS
The main advantage of trading using opposite Filo Mining and Zwipe AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Filo Mining position performs unexpectedly, Zwipe AS 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 Zwipe AS will offset losses from the drop in Zwipe AS's long position.| Filo Mining vs. TF Bank AB | Filo Mining vs. Lundin Mining | Filo Mining vs. Invisio Communications AB | Filo Mining vs. Upsales Technology AB |
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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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