Correlation Between Toma As and Fillamentum
Can any of the company-specific risk be diversified away by investing in both Toma As 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 Toma As and Fillamentum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Toma as and Fillamentum as, you can compare the effects of market volatilities on Toma As 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 Toma As with a short position of Fillamentum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Toma As and Fillamentum.
Diversification Opportunities for Toma As and Fillamentum
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Toma and Fillamentum is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Toma as and Fillamentum as in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fillamentum as and Toma As 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 Toma as 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 Toma As i.e., Toma As and Fillamentum go up and down completely randomly.
Pair Corralation between Toma As and Fillamentum
Assuming the 90 days trading horizon Toma as is expected to under-perform the Fillamentum. But the stock apears to be less risky and, when comparing its historical volatility, Toma as is 1.41 times less risky than Fillamentum. The stock trades about -0.08 of its potential returns per unit of risk. The Fillamentum as is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 15,800 in Fillamentum as on November 27, 2024 and sell it today you would earn a total of 0.00 from holding Fillamentum as or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Toma as vs. Fillamentum as
Performance |
| Timeline |
| Toma as |
| Fillamentum as |
Toma As and Fillamentum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Toma As and Fillamentum
The main advantage of trading using opposite Toma As and Fillamentum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Toma As 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.The idea behind Toma as and Fillamentum as pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Fillamentum vs. Moneta Money Bank | Fillamentum vs. UNIQA Insurance Group | Fillamentum vs. JT ARCH INVESTMENTS | Fillamentum vs. Komercni Banka AS |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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