Correlation Between Leo Global and M Vision

Can any of the company-specific risk be diversified away by investing in both Leo Global and M 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 Leo Global and M Vision into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Leo Global Logistics and M Vision Public, you can compare the effects of market volatilities on Leo Global and M 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 Leo Global with a short position of M Vision. Check out your portfolio center. Please also check ongoing floating volatility patterns of Leo Global and M Vision.

Diversification Opportunities for Leo Global and M Vision

0.0

Correlation Coefficient

Leo Global  M Vision

Pay attention - limited upside

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

Pair Corralation between Leo Global and M Vision

If you would invest (100.00) in M Vision Public on September 22, 2024 and sell it today you would earn a total of  100.00  from holding M Vision Public or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Leo Global Logistics  vs.  M Vision Public

Leo Global Logistics

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Leo Global Logistics has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in January 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

M Vision Public

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days M Vision Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, M Vision is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Leo Global and M Vision

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

The idea behind Leo Global Logistics and M Vision 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.

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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.