Correlation Between Payment Financial and Infimer

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

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

Diversification Opportunities for Payment Financial and Infimer

-0.3

Correlation Coefficient

Payment Financial  Infimer

Very good diversification

The 3 months correlation between Payment and Infimer is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Payment Financial Technologies and Infimer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Infimer and Payment Financial 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 Payment Financial Technologies are associated (or correlated) with Infimer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Infimer has no effect on the direction of Payment Financial i.e., Payment Financial and Infimer go up and down completely randomly.

Pair Corralation between Payment Financial and Infimer

Assuming the 90 days trading horizon Payment Financial is expected to generate 208.47 times less return on investment than Infimer. But when comparing it to its historical volatility, Payment Financial Technologies is 87.72 times less risky than Infimer. It trades about 0.15 of its potential returns per unit of risk. Infimer is currently generating about 0.36 of returns per unit of risk over similar time horizon. If you would invest  4,700  in Infimer on September 17, 2024 and sell it today you would earn a total of  2,084,300  from holding Infimer or generate 44346.81% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Payment Financial Technologies  vs.  Infimer

Payment Financial

Risk-Adjusted Performance

12 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Payment Financial Technologies are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Payment Financial sustained solid returns over the last few months and may actually be approaching a breakup point.

Infimer

Risk-Adjusted Performance

28 of 100

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Infimer are ranked lower than 28 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Infimer sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Payment Financial and Infimer

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

The idea behind Payment Financial Technologies and Infimer 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.