Correlation Between Filo Mining and Lupaka Gold
Can any of the company-specific risk be diversified away by investing in both Filo Mining and Lupaka Gold 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 Lupaka Gold 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 Lupaka Gold Corp, you can compare the effects of market volatilities on Filo Mining and Lupaka Gold 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 Lupaka Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Filo Mining and Lupaka Gold.
Diversification Opportunities for Filo Mining and Lupaka Gold
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Filo and Lupaka is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Filo Mining Corp and Lupaka Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lupaka Gold Corp 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 Lupaka Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lupaka Gold Corp has no effect on the direction of Filo Mining i.e., Filo Mining and Lupaka Gold go up and down completely randomly.
Pair Corralation between Filo Mining and Lupaka Gold
Assuming the 90 days trading horizon Filo Mining is expected to generate 15.52 times less return on investment than Lupaka Gold. But when comparing it to its historical volatility, Filo Mining Corp is 5.29 times less risky than Lupaka Gold. It trades about 0.04 of its potential returns per unit of risk. Lupaka Gold Corp is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 6.00 in Lupaka Gold Corp on September 2, 2024 and sell it today you would earn a total of 0.50 from holding Lupaka Gold Corp or generate 8.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Filo Mining Corp vs. Lupaka Gold Corp
Performance |
| Timeline |
| Filo Mining Corp |
| Lupaka Gold Corp |
Filo Mining and Lupaka Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Filo Mining and Lupaka Gold
The main advantage of trading using opposite Filo Mining and Lupaka Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Filo Mining position performs unexpectedly, Lupaka Gold 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 Lupaka Gold will offset losses from the drop in Lupaka Gold's long position.| Filo Mining vs. Solaris Resources | Filo Mining vs. Alphamin Res | Filo Mining vs. Ero Copper Corp | Filo Mining vs. K92 Mining |
| Lupaka Gold vs. DIRTT Environmental Solutions | Lupaka Gold vs. Algoma Steel Group | Lupaka Gold vs. Gfl Environmental Holdings | Lupaka Gold vs. Osisko Metals |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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