Correlation Between Lotte Fine and Infinitt Healthcare
Can any of the company-specific risk be diversified away by investing in both Lotte Fine and Infinitt Healthcare 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 Lotte Fine and Infinitt Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lotte Fine Chemical and Infinitt Healthcare Co, you can compare the effects of market volatilities on Lotte Fine and Infinitt Healthcare 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 Lotte Fine with a short position of Infinitt Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lotte Fine and Infinitt Healthcare.
Diversification Opportunities for Lotte Fine and Infinitt Healthcare
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lotte and Infinitt is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Lotte Fine Chemical and Infinitt Healthcare Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Infinitt Healthcare and Lotte Fine 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 Lotte Fine Chemical are associated (or correlated) with Infinitt Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Infinitt Healthcare has no effect on the direction of Lotte Fine i.e., Lotte Fine and Infinitt Healthcare go up and down completely randomly.
Pair Corralation between Lotte Fine and Infinitt Healthcare
Assuming the 90 days trading horizon Lotte Fine Chemical is expected to under-perform the Infinitt Healthcare. In addition to that, Lotte Fine is 1.27 times more volatile than Infinitt Healthcare Co. It trades about -0.52 of its total potential returns per unit of risk. Infinitt Healthcare Co is currently generating about 0.17 per unit of volatility. If you would invest 434,000 in Infinitt Healthcare Co on August 29, 2024 and sell it today you would earn a total of 28,000 from holding Infinitt Healthcare Co or generate 6.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lotte Fine Chemical vs. Infinitt Healthcare Co
Performance |
| Timeline |
| Lotte Fine Chemical |
| Infinitt Healthcare |
Lotte Fine and Infinitt Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lotte Fine and Infinitt Healthcare
The main advantage of trading using opposite Lotte Fine and Infinitt Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lotte Fine position performs unexpectedly, Infinitt Healthcare 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 Infinitt Healthcare will offset losses from the drop in Infinitt Healthcare's long position.| Lotte Fine vs. LG Chemicals | Lotte Fine vs. Lotte Chemical Corp | Lotte Fine vs. Hyundai Steel | Lotte Fine vs. Seah Steel Corp |
| Infinitt Healthcare vs. AptaBio Therapeutics | Infinitt Healthcare vs. Daewoo SBI SPAC | Infinitt Healthcare vs. Dream Security co | Infinitt Healthcare vs. Microfriend |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |