Correlation Between Filter Vision and Micro Leasing
Can any of the company-specific risk be diversified away by investing in both Filter Vision and Micro Leasing 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 Filter Vision and Micro Leasing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Filter Vision Public and Micro Leasing Public, you can compare the effects of market volatilities on Filter Vision and Micro Leasing 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 Filter Vision with a short position of Micro Leasing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Filter Vision and Micro Leasing.
Diversification Opportunities for Filter Vision and Micro Leasing
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Filter and Micro is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Filter Vision Public and Micro Leasing Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Micro Leasing Public and Filter Vision 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 Filter Vision Public are associated (or correlated) with Micro Leasing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Micro Leasing Public has no effect on the direction of Filter Vision i.e., Filter Vision and Micro Leasing go up and down completely randomly.
Pair Corralation between Filter Vision and Micro Leasing
Assuming the 90 days trading horizon Filter Vision Public is expected to generate 0.46 times more return on investment than Micro Leasing. However, Filter Vision Public is 2.16 times less risky than Micro Leasing. It trades about -0.01 of its potential returns per unit of risk. Micro Leasing Public is currently generating about -0.04 per unit of risk. If you would invest 78.00 in Filter Vision Public on September 2, 2024 and sell it today you would lose (8.00) from holding Filter Vision Public or give up 10.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Filter Vision Public vs. Micro Leasing Public
Performance |
| Timeline |
| Filter Vision Public |
| Micro Leasing Public |
Filter Vision and Micro Leasing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Filter Vision and Micro Leasing
The main advantage of trading using opposite Filter Vision and Micro Leasing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Filter Vision position performs unexpectedly, Micro Leasing 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 Micro Leasing will offset losses from the drop in Micro Leasing's long position.| Filter Vision vs. G Capital Public | Filter Vision vs. Cho Thavee Public | Filter Vision vs. E for L | Filter Vision vs. East Coast Furnitech |
| Micro Leasing vs. East Coast Furnitech | Micro Leasing vs. Filter Vision Public | Micro Leasing vs. Cho Thavee Public | Micro Leasing vs. Akkhie Prakarn Public |
Check out your portfolio center.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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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