Correlation Between Filo Mining and CanAlaska Uranium
Can any of the company-specific risk be diversified away by investing in both Filo Mining and CanAlaska Uranium 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 CanAlaska Uranium 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 CanAlaska Uranium, you can compare the effects of market volatilities on Filo Mining and CanAlaska Uranium 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 CanAlaska Uranium. Check out your portfolio center. Please also check ongoing floating volatility patterns of Filo Mining and CanAlaska Uranium.
Diversification Opportunities for Filo Mining and CanAlaska Uranium
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Filo and CanAlaska is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Filo Mining Corp and CanAlaska Uranium in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CanAlaska Uranium 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 CanAlaska Uranium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CanAlaska Uranium has no effect on the direction of Filo Mining i.e., Filo Mining and CanAlaska Uranium go up and down completely randomly.
Pair Corralation between Filo Mining and CanAlaska Uranium
Assuming the 90 days horizon Filo Mining Corp is expected to under-perform the CanAlaska Uranium. But the otc stock apears to be less risky and, when comparing its historical volatility, Filo Mining Corp is 3.82 times less risky than CanAlaska Uranium. The otc stock trades about -0.13 of its potential returns per unit of risk. The CanAlaska Uranium is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 56.00 in CanAlaska Uranium on August 28, 2024 and sell it today you would lose (2.00) from holding CanAlaska Uranium or give up 3.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Filo Mining Corp vs. CanAlaska Uranium
Performance |
| Timeline |
| Filo Mining Corp |
| CanAlaska Uranium |
Filo Mining and CanAlaska Uranium Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Filo Mining and CanAlaska Uranium
The main advantage of trading using opposite Filo Mining and CanAlaska Uranium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Filo Mining position performs unexpectedly, CanAlaska Uranium 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 CanAlaska Uranium will offset losses from the drop in CanAlaska Uranium's long position.The idea behind Filo Mining Corp and CanAlaska Uranium pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| CanAlaska Uranium vs. Forum Energy Metals | CanAlaska Uranium vs. Namibia Critical Metals | CanAlaska Uranium vs. Themac Resources Group | CanAlaska Uranium vs. Pasinex Resources Limited |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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