Correlation Between Fillamentum and Photon Energy

Can any of the company-specific risk be diversified away by investing in both Fillamentum and Photon Energy 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 Fillamentum and Photon Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Fillamentum as and Photon Energy NV, you can compare the effects of market volatilities on Fillamentum and Photon Energy 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 Fillamentum with a short position of Photon Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fillamentum and Photon Energy.

Diversification Opportunities for Fillamentum and Photon Energy

-0.87

Correlation Coefficient

Fillamentum  Photon Energy

Pay attention - limited upside

The 3 months correlation between Fillamentum and Photon is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding Fillamentum as and Photon Energy NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Photon Energy NV and Fillamentum 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 Fillamentum as are associated (or correlated) with Photon Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Photon Energy NV has no effect on the direction of Fillamentum i.e., Fillamentum and Photon Energy go up and down completely randomly.

Pair Corralation between Fillamentum and Photon Energy

If you would invest  16,000  in Fillamentum as on August 30, 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 Against
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Fillamentum as  vs.  Photon Energy NV

Fillamentum as

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Fillamentum as are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, Fillamentum is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Photon Energy NV

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Photon Energy NV has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in December 2024. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Fillamentum and Photon Energy

The main advantage of trading using opposite Fillamentum and Photon Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fillamentum position performs unexpectedly, Photon Energy 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 Photon Energy will offset losses from the drop in Photon Energy's long position.

The idea behind Fillamentum as and Photon Energy NV 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.

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 Equity Valuation module to check real value of public entities based on technical and fundamental data.