Correlation Between Infrastrutture Wireless and Apax Global

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

By analyzing existing cross correlation between Infrastrutture Wireless Italiane and Apax Global Alpha, you can compare the effects of market volatilities on Infrastrutture Wireless and Apax Global 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 Infrastrutture Wireless with a short position of Apax Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infrastrutture Wireless and Apax Global.

Diversification Opportunities for Infrastrutture Wireless and Apax Global

-0.35

Correlation Coefficient

Infrastrutture Wireless  Apax Global

Very good diversification

The 3 months correlation between Infrastrutture and Apax is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Infrastrutture Wireless Italia and Apax Global Alpha in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apax Global Alpha and Infrastrutture Wireless 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 Infrastrutture Wireless Italiane are associated (or correlated) with Apax Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apax Global Alpha has no effect on the direction of Infrastrutture Wireless i.e., Infrastrutture Wireless and Apax Global go up and down completely randomly.

Pair Corralation between Infrastrutture Wireless and Apax Global

Assuming the 90 days trading horizon Infrastrutture Wireless Italiane is expected to generate 0.56 times more return on investment than Apax Global. However, Infrastrutture Wireless Italiane is 1.78 times less risky than Apax Global. It trades about 0.02 of its potential returns per unit of risk. Apax Global Alpha is currently generating about -0.01 per unit of risk. If you would invest  899.00  in Infrastrutture Wireless Italiane on September 4, 2024 and sell it today you would earn a total of  74.00  from holding Infrastrutture Wireless Italiane or generate 8.23% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	99.4%
Values	Daily Returns

Infrastrutture Wireless Italia  vs.  Apax Global Alpha

Infrastrutture Wireless

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Infrastrutture Wireless Italiane 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 newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Apax Global Alpha

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Apax Global Alpha has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Apax Global is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Infrastrutture Wireless and Apax Global

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

The idea behind Infrastrutture Wireless Italiane and Apax Global Alpha 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.