Correlation Between Fillamentum and Photon Energy
Can any of the company-specific risk be diversified away by investing in both Fillamentum and Photon Energy 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 Fillamentum and Photon Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fillamentum as and Photon Energy NV, you can compare the effects of market volatilities on Fillamentum and Photon Energy 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 Fillamentum with a short position of Photon Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fillamentum and Photon Energy.
Diversification Opportunities for Fillamentum and Photon Energy
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fillamentum and Photon is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Fillamentum as and Photon Energy NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Photon Energy NV and Fillamentum 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 Fillamentum as are associated (or correlated) with Photon Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Photon Energy NV has no effect on the direction of Fillamentum i.e., Fillamentum and Photon Energy go up and down completely randomly.
Pair Corralation between Fillamentum and Photon Energy
Assuming the 90 days trading horizon Fillamentum as is expected to generate 5.47 times more return on investment than Photon Energy. However, Fillamentum is 5.47 times more volatile than Photon Energy NV. It trades about 0.23 of its potential returns per unit of risk. Photon Energy NV is currently generating about 0.15 per unit of risk. If you would invest 9,600 in Fillamentum as on November 3, 2024 and sell it today you would earn a total of 6,200 from holding Fillamentum as or generate 64.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fillamentum as vs. Photon Energy NV
Performance |
| Timeline |
| Fillamentum as |
| Photon Energy NV |
Fillamentum and Photon Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fillamentum and Photon Energy
The main advantage of trading using opposite Fillamentum and Photon Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fillamentum position performs unexpectedly, Photon Energy 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 Photon Energy will offset losses from the drop in Photon Energy's long position.| Fillamentum vs. Vienna Insurance Group | Fillamentum vs. Moneta Money Bank | Fillamentum vs. Raiffeisen Bank International | Fillamentum vs. Erste Group Bank |
| Photon Energy vs. Vienna Insurance Group | Photon Energy vs. Raiffeisen Bank International | Photon Energy vs. UNIQA Insurance Group |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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