Correlation Between Kinnevik Investment and Filo Mining
Can any of the company-specific risk be diversified away by investing in both Kinnevik Investment and Filo Mining 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 Kinnevik Investment and Filo Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kinnevik Investment AB and Filo Mining Corp, you can compare the effects of market volatilities on Kinnevik Investment and Filo 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 Kinnevik Investment with a short position of Filo Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinnevik Investment and Filo Mining.
Diversification Opportunities for Kinnevik Investment and Filo Mining
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kinnevik and Filo is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Kinnevik Investment AB and Filo Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Filo Mining Corp and Kinnevik Investment 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 Kinnevik Investment AB are associated (or correlated) with Filo Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Filo Mining Corp has no effect on the direction of Kinnevik Investment i.e., Kinnevik Investment and Filo Mining go up and down completely randomly.
Pair Corralation between Kinnevik Investment and Filo Mining
Assuming the 90 days trading horizon Kinnevik Investment AB is expected to under-perform the Filo Mining. In addition to that, Kinnevik Investment is 1.1 times more volatile than Filo Mining Corp. It trades about -0.06 of its total potential returns per unit of risk. Filo Mining Corp is currently generating about 0.11 per unit of volatility. If you would invest 16,800 in Filo Mining Corp on August 27, 2024 and sell it today you would earn a total of 8,950 from holding Filo Mining Corp or generate 53.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinnevik Investment AB vs. Filo Mining Corp
Performance |
| Timeline |
| Kinnevik Investment |
| Filo Mining Corp |
Kinnevik Investment and Filo Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinnevik Investment and Filo Mining
The main advantage of trading using opposite Kinnevik Investment and Filo Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinnevik Investment position performs unexpectedly, Filo 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 Filo Mining will offset losses from the drop in Filo Mining's long position.| Kinnevik Investment vs. Kinnevik Investment AB | Kinnevik Investment vs. Investor AB ser | Kinnevik Investment vs. Industrivarden AB ser | Kinnevik Investment vs. L E Lundbergfretagen |
| Filo Mining vs. Lohilo Foods AB | Filo Mining vs. Addtech AB | Filo Mining vs. Vitec Software Group | Filo Mining vs. AVTECH Sweden AB |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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