Correlation Between Kbi Metal and Infinitt Healthcare
Can any of the company-specific risk be diversified away by investing in both Kbi Metal 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 Kbi Metal and Infinitt Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kbi Metal Co and Infinitt Healthcare Co, you can compare the effects of market volatilities on Kbi Metal 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 Kbi Metal with a short position of Infinitt Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kbi Metal and Infinitt Healthcare.
Diversification Opportunities for Kbi Metal and Infinitt Healthcare
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Kbi and Infinitt is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Kbi Metal Co and Infinitt Healthcare Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Infinitt Healthcare and Kbi Metal 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 Kbi Metal Co 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 Kbi Metal i.e., Kbi Metal and Infinitt Healthcare go up and down completely randomly.
Pair Corralation between Kbi Metal and Infinitt Healthcare
Assuming the 90 days trading horizon Kbi Metal Co is expected to generate 3.83 times more return on investment than Infinitt Healthcare. However, Kbi Metal is 3.83 times more volatile than Infinitt Healthcare Co. It trades about 0.18 of its potential returns per unit of risk. Infinitt Healthcare Co is currently generating about -0.15 per unit of risk. If you would invest 196,900 in Kbi Metal Co on October 14, 2024 and sell it today you would earn a total of 22,600 from holding Kbi Metal Co or generate 11.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kbi Metal Co vs. Infinitt Healthcare Co
Performance |
| Timeline |
| Kbi Metal |
| Infinitt Healthcare |
Kbi Metal and Infinitt Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kbi Metal and Infinitt Healthcare
The main advantage of trading using opposite Kbi Metal and Infinitt Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kbi Metal 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.| Kbi Metal vs. Hwasung Industrial Co | Kbi Metal vs. Eagon Industrial Co | Kbi Metal vs. Pyung Hwa Industrial | Kbi Metal vs. Hyundai Industrial Co |
| Infinitt Healthcare vs. Woorim Machinery Co | Infinitt Healthcare vs. Sungchang Autotech Co | Infinitt Healthcare vs. Dongbang Ship Machinery | Infinitt Healthcare vs. Techwing |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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