Correlation Between Fillamentum and GEVORKYAN

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

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

Diversification Opportunities for Fillamentum and GEVORKYAN

-0.6

Correlation Coefficient

Fillamentum  GEVORKYAN

Excellent diversification

The 3 months correlation between Fillamentum and GEVORKYAN is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Fillamentum as and GEVORKYAN as in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GEVORKYAN as 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 GEVORKYAN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GEVORKYAN as has no effect on the direction of Fillamentum i.e., Fillamentum and GEVORKYAN go up and down completely randomly.

Pair Corralation between Fillamentum and GEVORKYAN

Assuming the 90 days trading horizon Fillamentum as is expected to generate 15.24 times more return on investment than GEVORKYAN. However, Fillamentum is 15.24 times more volatile than GEVORKYAN as. It trades about 0.07 of its potential returns per unit of risk. GEVORKYAN as is currently generating about 0.1 per unit of risk. If you would invest  15,500  in Fillamentum as on September 21, 2024 and sell it today you would lose (6,700) from holding Fillamentum as or give up 43.23% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.44%
Values	Daily Returns

Fillamentum as  vs.  GEVORKYAN as

Fillamentum as

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Fillamentum as are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Fillamentum reported solid returns over the last few months and may actually be approaching a breakup point.

GEVORKYAN as

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in GEVORKYAN as are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, GEVORKYAN may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Fillamentum and GEVORKYAN

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

The idea behind Fillamentum as and GEVORKYAN 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.

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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 Commodity Directory module to find actively traded commodities issued by global exchanges.