Correlation Between Filament Health and MGC Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Filament Health and MGC Pharmaceuticals 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 Filament Health and MGC Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Filament Health Corp and MGC Pharmaceuticals, you can compare the effects of market volatilities on Filament Health and MGC Pharmaceuticals 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 Filament Health with a short position of MGC Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Filament Health and MGC Pharmaceuticals.
Diversification Opportunities for Filament Health and MGC Pharmaceuticals
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Filament and MGC is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Filament Health Corp and MGC Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MGC Pharmaceuticals and Filament Health 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 Filament Health Corp are associated (or correlated) with MGC Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MGC Pharmaceuticals has no effect on the direction of Filament Health i.e., Filament Health and MGC Pharmaceuticals go up and down completely randomly.
Pair Corralation between Filament Health and MGC Pharmaceuticals
If you would invest 3.98 in Filament Health Corp on October 30, 2024 and sell it today you would lose (0.54) from holding Filament Health Corp or give up 13.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 5.56% |
| Values | Daily Returns |
Filament Health Corp vs. MGC Pharmaceuticals
Performance |
| Timeline |
| Filament Health Corp |
| MGC Pharmaceuticals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Filament Health and MGC Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Filament Health and MGC Pharmaceuticals
The main advantage of trading using opposite Filament Health and MGC Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Filament Health position performs unexpectedly, MGC Pharmaceuticals 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 MGC Pharmaceuticals will offset losses from the drop in MGC Pharmaceuticals' long position.| Filament Health vs. Target Group | Filament Health vs. Aequus Pharmaceuticals | Filament Health vs. Sky Century Investment | Filament Health vs. Levitee Labs |
| MGC Pharmaceuticals vs. Target Group | MGC Pharmaceuticals vs. Aequus Pharmaceuticals | MGC Pharmaceuticals vs. Filament Health Corp | MGC Pharmaceuticals vs. Sky Century Investment |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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