Correlation Between Footway Group and Beowulf Mining
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By analyzing existing cross correlation between Footway Group AB and Beowulf Mining PLC, you can compare the effects of market volatilities on Footway Group and Beowulf Mining 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 Footway Group with a short position of Beowulf Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Footway Group and Beowulf Mining.
Diversification Opportunities for Footway Group and Beowulf Mining
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Footway and Beowulf is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Footway Group AB and Beowulf Mining PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beowulf Mining PLC and Footway Group 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 Footway Group AB are associated (or correlated) with Beowulf Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beowulf Mining PLC has no effect on the direction of Footway Group i.e., Footway Group and Beowulf Mining go up and down completely randomly.
Pair Corralation between Footway Group and Beowulf Mining
Assuming the 90 days trading horizon Footway Group AB is expected to generate 1.07 times more return on investment than Beowulf Mining. However, Footway Group is 1.07 times more volatile than Beowulf Mining PLC. It trades about -0.02 of its potential returns per unit of risk. Beowulf Mining PLC is currently generating about -0.11 per unit of risk. If you would invest 4,040 in Footway Group AB on August 29, 2024 and sell it today you would lose (1,040) from holding Footway Group AB or give up 25.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Footway Group AB vs. Beowulf Mining PLC
Performance |
| Timeline |
| Footway Group AB |
| Beowulf Mining PLC |
Footway Group and Beowulf Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Footway Group and Beowulf Mining
The main advantage of trading using opposite Footway Group and Beowulf Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Footway Group position performs unexpectedly, Beowulf Mining 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 Beowulf Mining will offset losses from the drop in Beowulf Mining's long position.| Footway Group vs. SolTech Energy Sweden | Footway Group vs. Lohilo Foods AB | Footway Group vs. Sdiptech AB | Footway Group vs. Upsales Technology AB |
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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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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