Correlation Between Filo Mining and Benton Resources
Can any of the company-specific risk be diversified away by investing in both Filo Mining and Benton Resources 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 Benton Resources 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 Benton Resources, you can compare the effects of market volatilities on Filo Mining and Benton Resources 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 Benton Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Filo Mining and Benton Resources.
Diversification Opportunities for Filo Mining and Benton Resources
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Filo and Benton is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Filo Mining Corp and Benton Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Benton Resources 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 Benton Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Benton Resources has no effect on the direction of Filo Mining i.e., Filo Mining and Benton Resources go up and down completely randomly.
Pair Corralation between Filo Mining and Benton Resources
Assuming the 90 days horizon Filo Mining Corp is expected to under-perform the Benton Resources. But the otc stock apears to be less risky and, when comparing its historical volatility, Filo Mining Corp is 30.41 times less risky than Benton Resources. The otc stock trades about -0.09 of its potential returns per unit of risk. The Benton Resources is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 4.82 in Benton Resources on November 4, 2024 and sell it today you would earn a total of 0.54 from holding Benton Resources or generate 11.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 55.0% |
| Values | Daily Returns |
Filo Mining Corp vs. Benton Resources
Performance |
| Timeline |
| Filo Mining Corp |
| Benton Resources |
Filo Mining and Benton Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Filo Mining and Benton Resources
The main advantage of trading using opposite Filo Mining and Benton Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Filo Mining position performs unexpectedly, Benton Resources 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 Benton Resources will offset losses from the drop in Benton Resources' long position.| Filo Mining vs. Lotus Resources Limited | Filo Mining vs. Golden Goliath Resources | Filo Mining vs. Stria Lithium | Filo Mining vs. Monitor Ventures |
| Benton Resources vs. Piedmont Lithium Ltd | Benton Resources vs. Sigma Lithium Resources | Benton Resources vs. Standard Lithium | Benton Resources vs. MP Materials 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |