Correlation Between Photon Energy and Fillamentum
Can any of the company-specific risk be diversified away by investing in both Photon Energy and Fillamentum 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 Photon Energy and Fillamentum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Photon Energy NV and Fillamentum as, you can compare the effects of market volatilities on Photon Energy and Fillamentum 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 Photon Energy with a short position of Fillamentum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Photon Energy and Fillamentum.
Diversification Opportunities for Photon Energy and Fillamentum
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Photon and Fillamentum is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Photon Energy NV and Fillamentum as in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fillamentum as and Photon Energy 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 Photon Energy NV are associated (or correlated) with Fillamentum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fillamentum as has no effect on the direction of Photon Energy i.e., Photon Energy and Fillamentum go up and down completely randomly.
Pair Corralation between Photon Energy and Fillamentum
Assuming the 90 days trading horizon Photon Energy NV is expected to under-perform the Fillamentum. But the stock apears to be less risky and, when comparing its historical volatility, Photon Energy NV is 4.21 times less risky than Fillamentum. The stock trades about -0.1 of its potential returns per unit of risk. The Fillamentum as is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 20,000 in Fillamentum as on November 28, 2024 and sell it today you would lose (4,200) from holding Fillamentum as or give up 21.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Photon Energy NV vs. Fillamentum as
Performance |
| Timeline |
| Photon Energy NV |
| Fillamentum as |
Photon Energy and Fillamentum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Photon Energy and Fillamentum
The main advantage of trading using opposite Photon Energy and Fillamentum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Photon Energy position performs unexpectedly, Fillamentum 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 Fillamentum will offset losses from the drop in Fillamentum's long position.| Photon Energy vs. Vienna Insurance Group | Photon Energy vs. UNIQA Insurance Group | Photon Energy vs. Moneta Money Bank | Photon Energy vs. Raiffeisen Bank International |
| Fillamentum vs. UNIQA Insurance Group | Fillamentum vs. JT ARCH INVESTMENTS | Fillamentum vs. Vienna Insurance Group |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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