Correlation Between Ferrexpo PLC and Panther Metals
Can any of the company-specific risk be diversified away by investing in both Ferrexpo PLC and Panther Metals 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 Ferrexpo PLC and Panther Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ferrexpo PLC and Panther Metals PLC, you can compare the effects of market volatilities on Ferrexpo PLC and Panther Metals 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 Ferrexpo PLC with a short position of Panther Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ferrexpo PLC and Panther Metals.
Diversification Opportunities for Ferrexpo PLC and Panther Metals
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ferrexpo and Panther is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Ferrexpo PLC and Panther Metals PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Panther Metals PLC and Ferrexpo PLC 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 Ferrexpo PLC are associated (or correlated) with Panther Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Panther Metals PLC has no effect on the direction of Ferrexpo PLC i.e., Ferrexpo PLC and Panther Metals go up and down completely randomly.
Pair Corralation between Ferrexpo PLC and Panther Metals
Assuming the 90 days trading horizon Ferrexpo PLC is expected to generate 1.08 times more return on investment than Panther Metals. However, Ferrexpo PLC is 1.08 times more volatile than Panther Metals PLC. It trades about 0.2 of its potential returns per unit of risk. Panther Metals PLC is currently generating about -0.1 per unit of risk. If you would invest 5,420 in Ferrexpo PLC on October 24, 2024 and sell it today you would earn a total of 5,200 from holding Ferrexpo PLC or generate 95.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ferrexpo PLC vs. Panther Metals PLC
Performance |
| Timeline |
| Ferrexpo PLC |
| Panther Metals PLC |
Ferrexpo PLC and Panther Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ferrexpo PLC and Panther Metals
The main advantage of trading using opposite Ferrexpo PLC and Panther Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ferrexpo PLC position performs unexpectedly, Panther Metals 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 Panther Metals will offset losses from the drop in Panther Metals' long position.| Ferrexpo PLC vs. Sligro Food Group | Ferrexpo PLC vs. Westlake Chemical Corp | Ferrexpo PLC vs. Tyson Foods Cl | Ferrexpo PLC vs. Eastman Chemical Co |
| Panther Metals vs. Givaudan SA | Panther Metals vs. Antofagasta PLC | Panther Metals vs. Ferrexpo PLC | Panther Metals vs. Atalaya Mining |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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