Correlation Between G Capital and Filter Vision
Can any of the company-specific risk be diversified away by investing in both G Capital and Filter Vision 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 G Capital and Filter Vision into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between G Capital Public and Filter Vision Public, you can compare the effects of market volatilities on G Capital and Filter Vision 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 G Capital with a short position of Filter Vision. Check out your portfolio center. Please also check ongoing floating volatility patterns of G Capital and Filter Vision.
Diversification Opportunities for G Capital and Filter Vision
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GCAP and Filter is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding G Capital Public and Filter Vision Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Filter Vision Public and G Capital 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 G Capital Public are associated (or correlated) with Filter Vision. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Filter Vision Public has no effect on the direction of G Capital i.e., G Capital and Filter Vision go up and down completely randomly.
Pair Corralation between G Capital and Filter Vision
Assuming the 90 days trading horizon G Capital Public is expected to under-perform the Filter Vision. In addition to that, G Capital is 2.56 times more volatile than Filter Vision Public. It trades about -0.3 of its total potential returns per unit of risk. Filter Vision Public is currently generating about -0.13 per unit of volatility. If you would invest 74.00 in Filter Vision Public on August 25, 2024 and sell it today you would lose (4.00) from holding Filter Vision Public or give up 5.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
G Capital Public vs. Filter Vision Public
Performance |
| Timeline |
| G Capital Public |
| Filter Vision Public |
G Capital and Filter Vision Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with G Capital and Filter Vision
The main advantage of trading using opposite G Capital and Filter Vision positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G Capital position performs unexpectedly, Filter Vision 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 Filter Vision will offset losses from the drop in Filter Vision's long position.| G Capital vs. Amanah Leasing Public | G Capital vs. Muangthai Capital Public | G Capital vs. Infraset Public | G Capital vs. JMT Network Services |
| Filter Vision vs. G Capital Public | Filter Vision vs. Cho Thavee Public | Filter Vision vs. E for L | Filter Vision vs. East Coast Furnitech |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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