Correlation Between Infinitt Healthcare and Insung Information
Can any of the company-specific risk be diversified away by investing in both Infinitt Healthcare and Insung Information 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 Infinitt Healthcare and Insung Information into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Infinitt Healthcare Co and Insung Information Co, you can compare the effects of market volatilities on Infinitt Healthcare and Insung Information 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 Infinitt Healthcare with a short position of Insung Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infinitt Healthcare and Insung Information.
Diversification Opportunities for Infinitt Healthcare and Insung Information
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Infinitt and Insung is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Infinitt Healthcare Co and Insung Information Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Insung Information and Infinitt Healthcare 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 Infinitt Healthcare Co are associated (or correlated) with Insung Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Insung Information has no effect on the direction of Infinitt Healthcare i.e., Infinitt Healthcare and Insung Information go up and down completely randomly.
Pair Corralation between Infinitt Healthcare and Insung Information
Assuming the 90 days trading horizon Infinitt Healthcare Co is expected to generate 0.71 times more return on investment than Insung Information. However, Infinitt Healthcare Co is 1.4 times less risky than Insung Information. It trades about -0.02 of its potential returns per unit of risk. Insung Information Co is currently generating about -0.1 per unit of risk. If you would invest 438,500 in Infinitt Healthcare Co on September 25, 2024 and sell it today you would lose (16,500) from holding Infinitt Healthcare Co or give up 3.76% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Infinitt Healthcare Co vs. Insung Information Co
Performance |
Timeline |
Infinitt Healthcare |
Insung Information |
Infinitt Healthcare and Insung Information Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Infinitt Healthcare and Insung Information
The main advantage of trading using opposite Infinitt Healthcare and Insung Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infinitt Healthcare position performs unexpectedly, Insung Information 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 Insung Information will offset losses from the drop in Insung Information's long position.Infinitt Healthcare vs. AptaBio Therapeutics | Infinitt Healthcare vs. Wonbang Tech Co | Infinitt Healthcare vs. Busan Industrial Co | Infinitt Healthcare vs. Busan Ind |
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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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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