Correlation Between Beowulf Mining and Isofol Medical

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

By analyzing existing cross correlation between Beowulf Mining PLC and Isofol Medical AB, you can compare the effects of market volatilities on Beowulf Mining and Isofol Medical 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 Beowulf Mining with a short position of Isofol Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beowulf Mining and Isofol Medical.

Diversification Opportunities for Beowulf Mining and Isofol Medical

-0.42

Correlation Coefficient

Beowulf Mining  Isofol Medical

Very good diversification

The 3 months correlation between Beowulf and Isofol is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Beowulf Mining PLC and Isofol Medical AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Isofol Medical AB and Beowulf Mining 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 Beowulf Mining PLC are associated (or correlated) with Isofol Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Isofol Medical AB has no effect on the direction of Beowulf Mining i.e., Beowulf Mining and Isofol Medical go up and down completely randomly.

Pair Corralation between Beowulf Mining and Isofol Medical

Assuming the 90 days trading horizon Beowulf Mining PLC is expected to under-perform the Isofol Medical. But the stock apears to be less risky and, when comparing its historical volatility, Beowulf Mining PLC is 1.69 times less risky than Isofol Medical. The stock trades about -0.04 of its potential returns per unit of risk. The Isofol Medical AB is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  91.00  in Isofol Medical AB on April 24, 2025 and sell it today you would earn a total of  10.00  from holding Isofol Medical AB or generate 10.99% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Beowulf Mining PLC  vs.  Isofol Medical AB

Beowulf Mining PLC

Risk-Adjusted Performance

Very Weak

Over the last 90 days Beowulf Mining PLC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Beowulf Mining is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Isofol Medical AB

Risk-Adjusted Performance

Very Weak

Over the last 90 days Isofol Medical AB has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in August 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Beowulf Mining and Isofol Medical

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

The idea behind Beowulf Mining PLC and Isofol Medical AB 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.