Correlation Between Dongbang Transport and Infinitt Healthcare
Can any of the company-specific risk be diversified away by investing in both Dongbang Transport 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 Dongbang Transport and Infinitt Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dongbang Transport Logistics and Infinitt Healthcare Co, you can compare the effects of market volatilities on Dongbang Transport 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 Dongbang Transport with a short position of Infinitt Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongbang Transport and Infinitt Healthcare.
Diversification Opportunities for Dongbang Transport and Infinitt Healthcare
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Dongbang and Infinitt is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Dongbang Transport Logistics and Infinitt Healthcare Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Infinitt Healthcare and Dongbang Transport 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 Dongbang Transport Logistics 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 Dongbang Transport i.e., Dongbang Transport and Infinitt Healthcare go up and down completely randomly.
Pair Corralation between Dongbang Transport and Infinitt Healthcare
Assuming the 90 days trading horizon Dongbang Transport Logistics is expected to generate 2.83 times more return on investment than Infinitt Healthcare. However, Dongbang Transport is 2.83 times more volatile than Infinitt Healthcare Co. It trades about 0.03 of its potential returns per unit of risk. Infinitt Healthcare Co is currently generating about -0.06 per unit of risk. If you would invest 226,500 in Dongbang Transport Logistics on August 28, 2024 and sell it today you would earn a total of 11,500 from holding Dongbang Transport Logistics or generate 5.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.17% |
| Values | Daily Returns |
Dongbang Transport Logistics vs. Infinitt Healthcare Co
Performance |
| Timeline |
| Dongbang Transport |
| Infinitt Healthcare |
Dongbang Transport and Infinitt Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongbang Transport and Infinitt Healthcare
The main advantage of trading using opposite Dongbang Transport and Infinitt Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongbang Transport 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.| Dongbang Transport vs. AptaBio Therapeutics | Dongbang Transport vs. Daewoo SBI SPAC | Dongbang Transport vs. Dream Security co | Dongbang Transport vs. Microfriend |
| 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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