Correlation Between Filter Vision and XSpring Capital

Can any of the company-specific risk be diversified away by investing in both Filter Vision and XSpring Capital 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 XSpring Capital 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 XSpring Capital Public, you can compare the effects of market volatilities on Filter Vision and XSpring Capital 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 XSpring Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Filter Vision and XSpring Capital.

Diversification Opportunities for Filter Vision and XSpring Capital

0.69

Correlation Coefficient

Filter Vision  XSpring Capital

Poor diversification

The 3 months correlation between Filter and XSpring is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Filter Vision Public and XSpring Capital Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XSpring Capital 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 XSpring Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XSpring Capital Public has no effect on the direction of Filter Vision i.e., Filter Vision and XSpring Capital go up and down completely randomly.

Pair Corralation between Filter Vision and XSpring Capital

Assuming the 90 days trading horizon Filter Vision Public is expected to generate 1.39 times more return on investment than XSpring Capital. However, Filter Vision is 1.39 times more volatile than XSpring Capital Public. It trades about 0.04 of its potential returns per unit of risk. XSpring Capital Public is currently generating about -0.08 per unit of risk. If you would invest  44.00  in Filter Vision Public on December 30, 2024 and sell it today you would earn a total of  2.00  from holding Filter Vision Public or generate 4.55% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Filter Vision Public  vs.  XSpring Capital Public

Filter Vision Public

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Filter Vision Public are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting fundamental indicators, Filter Vision may actually be approaching a critical reversion point that can send shares even higher in April 2025.

XSpring Capital Public

Risk-Adjusted Performance

Very Weak

Over the last 90 days XSpring Capital Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's technical and fundamental indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Pair Trading with Filter Vision and XSpring Capital

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

The idea behind Filter Vision Public and XSpring Capital Public 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.