Correlation Between Media and Filo Mining
Can any of the company-specific risk be diversified away by investing in both Media 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 Media and Filo Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Media and Games and Filo Mining Corp, you can compare the effects of market volatilities on Media 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 Media with a short position of Filo Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Media and Filo Mining.
Diversification Opportunities for Media and Filo Mining
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Media and Filo is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Media and Games 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 Media 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 Media and Games 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 Media i.e., Media and Filo Mining go up and down completely randomly.
Pair Corralation between Media and Filo Mining
Assuming the 90 days trading horizon Media and Games is expected to generate 1.78 times more return on investment than Filo Mining. However, Media is 1.78 times more volatile than Filo Mining Corp. It trades about 0.13 of its potential returns per unit of risk. Filo Mining Corp is currently generating about 0.07 per unit of risk. If you would invest 1,192 in Media and Games on September 14, 2024 and sell it today you would earn a total of 2,703 from holding Media and Games or generate 226.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Media and Games vs. Filo Mining Corp
Performance |
| Timeline |
| Media and Games |
| Filo Mining Corp |
Media and Filo Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Media and Filo Mining
The main advantage of trading using opposite Media and Filo Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Media 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.| Media vs. Embracer Group AB | Media vs. Samhllsbyggnadsbolaget i Norden | Media vs. Sinch AB | Media vs. Zaptec AS |
| Filo Mining vs. Boliden AB | Filo Mining vs. KABE Group AB | Filo Mining vs. IAR Systems Group | Filo Mining vs. Mekonomen 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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