Correlation Between E For and Filter Vision
Can any of the company-specific risk be diversified away by investing in both E For 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 E For and Filter Vision into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between E for L and Filter Vision Public, you can compare the effects of market volatilities on E For 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 E For with a short position of Filter Vision. Check out your portfolio center. Please also check ongoing floating volatility patterns of E For and Filter Vision.
Diversification Opportunities for E For and Filter Vision
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between EFORL and Filter is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding E for L 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 E For 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 E for L 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 E For i.e., E For and Filter Vision go up and down completely randomly.
Pair Corralation between E For and Filter Vision
Assuming the 90 days trading horizon E for L is expected to generate 1.72 times more return on investment than Filter Vision. However, E For is 1.72 times more volatile than Filter Vision Public. It trades about 0.05 of its potential returns per unit of risk. Filter Vision Public is currently generating about 0.06 per unit of risk. If you would invest 14.00 in E for L on April 21, 2025 and sell it today you would earn a total of 1.00 from holding E for L or generate 7.14% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
E for L vs. Filter Vision Public
Performance |
Timeline |
E for L |
Filter Vision Public |
E For and Filter Vision Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with E For and Filter Vision
The main advantage of trading using opposite E For and Filter Vision positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if E For 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.E For vs. ARIP Public | E For vs. East Coast Furnitech | E For vs. Forth Smart Service | E For vs. Filter Vision Public |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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