Correlation Between Episurf Medical and Filo Mining | EPIS-B.ST vs. FIL.ST

Correlation Between Episurf Medical and Filo Mining

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Can any of the company-specific risk be diversified away by investing in both Episurf Medical 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 Episurf Medical and Filo Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Episurf Medical AB and Filo Mining Corp, you can compare the effects of market volatilities on Episurf Medical 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 Episurf Medical with a short position of Filo Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Episurf Medical and Filo Mining.

Diversification Opportunities for Episurf Medical and Filo Mining

EpisurfFiloDiversified AwayEpisurfFiloDiversified Away100%
-0.21
  Correlation Coefficient

Very good diversification

The 3 months correlation between Episurf and Filo is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Episurf Medical 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 Episurf Medical 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 Episurf Medical 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 Episurf Medical i.e., Episurf Medical and Filo Mining go up and down completely randomly.

Pair Corralation between Episurf Medical and Filo Mining

Assuming the 90 days trading horizon Episurf Medical AB is expected to under-perform the Filo Mining. In addition to that, Episurf Medical is 1.8 times more volatile than Filo Mining Corp. It trades about -0.1 of its total potential returns per unit of risk. Filo Mining Corp is currently generating about 0.04 per unit of volatility. If you would invest  18,260  in Filo Mining Corp on September 14, 2024 and sell it today you would earn a total of  6,340  from holding Filo Mining Corp or generate 34.72% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Episurf Medical AB  vs.  Filo Mining Corp

 Performance 
JavaScript chart by amCharts 3.21.15OctNov -30-20-10010
JavaScript chart by amCharts 3.21.15EPIS-B FIL
       Timeline  
Episurf Medical AB 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Episurf Medical AB has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's forward indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec0.110.120.130.140.150.160.170.180.190.2
Filo Mining Corp 

Risk-Adjusted Performance

5 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Filo Mining Corp are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable essential indicators, Filo Mining is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec235240245250255260

Episurf Medical and Filo Mining Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-7.61-5.7-3.79-1.88-0.02921.673.425.186.938.69 0.050.100.150.200.250.300.35
JavaScript chart by amCharts 3.21.15EPIS-B FIL
       Returns  

Pair Trading with Episurf Medical and Filo Mining

The main advantage of trading using opposite Episurf Medical and Filo Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Episurf Medical 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.
The idea behind Episurf Medical AB and Filo Mining Corp 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.
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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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..

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