Correlation Between Image Protect and Clean Vision

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

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

Diversification Opportunities for Image Protect and Clean Vision

-0.51

Correlation Coefficient

Image Protect  Clean Vision

Excellent diversification

The 3 months correlation between Image and Clean is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Image Protect and Clean Vision Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clean Vision Corp and Image Protect 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 Image Protect are associated (or correlated) with Clean Vision. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clean Vision Corp has no effect on the direction of Image Protect i.e., Image Protect and Clean Vision go up and down completely randomly.

Pair Corralation between Image Protect and Clean Vision

Given the investment horizon of 90 days Image Protect is expected to generate 28.66 times more return on investment than Clean Vision. However, Image Protect is 28.66 times more volatile than Clean Vision Corp. It trades about 0.19 of its potential returns per unit of risk. Clean Vision Corp is currently generating about 0.01 per unit of risk. If you would invest  0.02  in Image Protect on April 26, 2025 and sell it today you would lose (0.01) from holding Image Protect or give up 50.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.41%
Values	Daily Returns

Image Protect  vs.  Clean Vision Corp

Image Protect

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Image Protect are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite quite inconsistent basic indicators, Image Protect disclosed solid returns over the last few months and may actually be approaching a breakup point.

Clean Vision Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Clean Vision Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Pair Trading with Image Protect and Clean Vision

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

The idea behind Image Protect and Clean Vision Corp 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.