Correlation Between Filament Health and Levitee Labs

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

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

Diversification Opportunities for Filament Health and Levitee Labs

0.0

Correlation Coefficient

Filament Health  Levitee Labs

Pay attention - limited upside

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

Pair Corralation between Filament Health and Levitee Labs

If you would invest  3.98  in Filament Health Corp on December 30, 2024 and sell it today you would lose (1.85) from holding Filament Health Corp or give up 46.48% of portfolio value over 90 days.

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

Filament Health Corp  vs.  Levitee Labs

Filament Health Corp

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Filament Health Corp are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile essential indicators, Filament Health reported solid returns over the last few months and may actually be approaching a breakup point.

Levitee Labs

Risk-Adjusted Performance

Very Weak

Over the last 90 days Levitee Labs has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Levitee Labs is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Filament Health and Levitee Labs

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

The idea behind Filament Health Corp and Levitee Labs 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.