Correlation Between FileCoin and EM

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

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

Diversification Opportunities for FileCoin and EM

0.0

Correlation Coefficient

FileCoin  EM

Pay attention - limited upside

The 3 months correlation between FileCoin and EM is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FileCoin and EM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EM and FileCoin 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 FileCoin are associated (or correlated) with EM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EM has no effect on the direction of FileCoin i.e., FileCoin and EM go up and down completely randomly.

Pair Corralation between FileCoin and EM

If you would invest  272.00  in FileCoin on April 21, 2025 and sell it today you would earn a total of  8.00  from holding FileCoin or generate 2.94% return on investment over 90 days.

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

FileCoin  vs.  EM

FileCoin

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in FileCoin are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady essential indicators, FileCoin may actually be approaching a critical reversion point that can send shares even higher in August 2025.

EM

Risk-Adjusted Performance

Very Weak

Over the last 90 days EM has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, EM is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with FileCoin and EM

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

The idea behind FileCoin and EM 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.