Correlation Between Infinite Group, and Kontrol Technologies

Can any of the company-specific risk be diversified away by investing in both Infinite Group, and Kontrol Technologies 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 Infinite Group, and Kontrol Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Infinite Group, Common and Kontrol Technologies Corp, you can compare the effects of market volatilities on Infinite Group, and Kontrol Technologies 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 Infinite Group, with a short position of Kontrol Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infinite Group, and Kontrol Technologies.

Diversification Opportunities for Infinite Group, and Kontrol Technologies

-0.14

Correlation Coefficient

Infinite Group,  Kontrol Technologies

Good diversification

The 3 months correlation between Infinite and Kontrol is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Infinite Group, Common and Kontrol Technologies Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kontrol Technologies Corp and Infinite Group, 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 Infinite Group, Common are associated (or correlated) with Kontrol Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kontrol Technologies Corp has no effect on the direction of Infinite Group, i.e., Infinite Group, and Kontrol Technologies go up and down completely randomly.

Pair Corralation between Infinite Group, and Kontrol Technologies

If you would invest  16.00  in Kontrol Technologies Corp on September 3, 2024 and sell it today you would lose (2.00) from holding Kontrol Technologies Corp or give up 12.5% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

Infinite Group, Common  vs.  Kontrol Technologies Corp

Infinite Group, Common

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Infinite Group, Common has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong fundamental indicators, Infinite Group, is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Kontrol Technologies Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Kontrol Technologies Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable essential indicators, Kontrol Technologies is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Infinite Group, and Kontrol Technologies

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

The idea behind Infinite Group, Common and Kontrol Technologies 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.