Correlation Between FOKUS MINING and CSL

Can any of the company-specific risk be diversified away by investing in both FOKUS MINING and CSL 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 CSL 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 CSL LTD SPONADR, you can compare the effects of market volatilities on FOKUS MINING and CSL 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 CSL. Check out your portfolio center. Please also check ongoing floating volatility patterns of FOKUS MINING and CSL.

Diversification Opportunities for FOKUS MINING and CSL

-0.06

Correlation Coefficient

FOKUS MINING  CSL

Good diversification

The 3 months correlation between FOKUS and CSL is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding FOKUS MINING P and CSL LTD SPONADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSL LTD SPONADR 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 CSL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSL LTD SPONADR has no effect on the direction of FOKUS MINING i.e., FOKUS MINING and CSL go up and down completely randomly.

Pair Corralation between FOKUS MINING and CSL

Assuming the 90 days trading horizon FOKUS MINING is expected to generate 1.76 times less return on investment than CSL. In addition to that, FOKUS MINING is 3.22 times more volatile than CSL LTD SPONADR. It trades about 0.02 of its total potential returns per unit of risk. CSL LTD SPONADR is currently generating about 0.09 per unit of volatility. If you would invest  6,500  in CSL LTD SPONADR on April 22, 2025 and sell it today you would earn a total of  550.00  from holding CSL LTD SPONADR or generate 8.46% return on investment over 90 days.

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

FOKUS MINING P  vs.  CSL LTD SPONADR

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 current stock price disturbance, may contribute to mid-run losses for the stockholders.

CSL LTD SPONADR

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in CSL LTD SPONADR are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile forward-looking indicators, CSL may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with FOKUS MINING and CSL

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

The idea behind FOKUS MINING P and CSL LTD SPONADR 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.