Correlation Between FOKUS MINING and SOGECLAIR

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

By analyzing existing cross correlation between FOKUS MINING P and SOGECLAIR SA INH, you can compare the effects of market volatilities on FOKUS MINING and SOGECLAIR 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 FOKUS MINING with a short position of SOGECLAIR. Check out your portfolio center. Please also check ongoing floating volatility patterns of FOKUS MINING and SOGECLAIR.

Diversification Opportunities for FOKUS MINING and SOGECLAIR

0.1

Correlation Coefficient

FOKUS MINING  SOGECLAIR

Average diversification

The 3 months correlation between FOKUS and SOGECLAIR is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding FOKUS MINING P and SOGECLAIR SA INH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SOGECLAIR SA INH and FOKUS 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 FOKUS MINING P are associated (or correlated) with SOGECLAIR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SOGECLAIR SA INH has no effect on the direction of FOKUS MINING i.e., FOKUS MINING and SOGECLAIR go up and down completely randomly.

Pair Corralation between FOKUS MINING and SOGECLAIR

Assuming the 90 days trading horizon FOKUS MINING P is expected to generate 4.93 times more return on investment than SOGECLAIR. However, FOKUS MINING is 4.93 times more volatile than SOGECLAIR SA INH. It trades about 0.07 of its potential returns per unit of risk. SOGECLAIR SA INH is currently generating about 0.05 per unit of risk. If you would invest  3.15  in FOKUS MINING P on April 20, 2025 and sell it today you would earn a total of  4.65  from holding FOKUS MINING P or generate 147.62% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

FOKUS MINING P  vs.  SOGECLAIR SA INH

FOKUS MINING P

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in FOKUS MINING P are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable technical and fundamental indicators, FOKUS MINING is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

SOGECLAIR SA INH

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in SOGECLAIR SA INH are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, SOGECLAIR reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with FOKUS MINING and SOGECLAIR

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

The idea behind FOKUS MINING P and SOGECLAIR SA INH 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.