Correlation Between Filo Mining and Huntsman Exploration
Can any of the company-specific risk be diversified away by investing in both Filo Mining and Huntsman Exploration 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 Huntsman Exploration 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 Huntsman Exploration, you can compare the effects of market volatilities on Filo Mining and Huntsman Exploration 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 Huntsman Exploration. Check out your portfolio center. Please also check ongoing floating volatility patterns of Filo Mining and Huntsman Exploration.
Diversification Opportunities for Filo Mining and Huntsman Exploration
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Filo and Huntsman is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Filo Mining Corp and Huntsman Exploration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huntsman Exploration 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 Huntsman Exploration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huntsman Exploration has no effect on the direction of Filo Mining i.e., Filo Mining and Huntsman Exploration go up and down completely randomly.
Pair Corralation between Filo Mining and Huntsman Exploration
Assuming the 90 days horizon Filo Mining is expected to generate 20.07 times less return on investment than Huntsman Exploration. But when comparing it to its historical volatility, Filo Mining Corp is 28.79 times less risky than Huntsman Exploration. It trades about 0.1 of its potential returns per unit of risk. Huntsman Exploration is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 3.50 in Huntsman Exploration on August 29, 2024 and sell it today you would earn a total of 0.20 from holding Huntsman Exploration or generate 5.71% 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. Huntsman Exploration
Performance |
| Timeline |
| Filo Mining Corp |
| Huntsman Exploration |
Filo Mining and Huntsman Exploration Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Filo Mining and Huntsman Exploration
The main advantage of trading using opposite Filo Mining and Huntsman Exploration positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Filo Mining position performs unexpectedly, Huntsman Exploration 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 Huntsman Exploration will offset losses from the drop in Huntsman Exploration's long position.| Filo Mining vs. Lotus Resources Limited | Filo Mining vs. Golden Goliath Resources | Filo Mining vs. Stria Lithium | Filo Mining vs. Monitor Ventures |
| Huntsman Exploration vs. Rockridge Resources | Huntsman Exploration vs. Ameriwest Lithium | Huntsman Exploration vs. Osisko Metals Incorporated | Huntsman Exploration vs. Volt Lithium Corp |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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