Correlation Between BIT Computer and Infinitt Healthcare
Can any of the company-specific risk be diversified away by investing in both BIT Computer 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 BIT Computer and Infinitt Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BIT Computer Co and Infinitt Healthcare Co, you can compare the effects of market volatilities on BIT Computer 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 BIT Computer with a short position of Infinitt Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of BIT Computer and Infinitt Healthcare.
Diversification Opportunities for BIT Computer and Infinitt Healthcare
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between BIT and Infinitt is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding BIT Computer 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 BIT Computer 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 BIT Computer 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 BIT Computer i.e., BIT Computer and Infinitt Healthcare go up and down completely randomly.
Pair Corralation between BIT Computer and Infinitt Healthcare
Assuming the 90 days trading horizon BIT Computer Co is expected to generate 1.36 times more return on investment than Infinitt Healthcare. However, BIT Computer is 1.36 times more volatile than Infinitt Healthcare Co. It trades about 0.0 of its potential returns per unit of risk. Infinitt Healthcare Co is currently generating about 0.0 per unit of risk. If you would invest 578,050 in BIT Computer Co on September 1, 2024 and sell it today you would lose (77,050) from holding BIT Computer Co or give up 13.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.64% |
| Values | Daily Returns |
BIT Computer Co vs. Infinitt Healthcare Co
Performance |
| Timeline |
| BIT Computer |
| Infinitt Healthcare |
BIT Computer and Infinitt Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BIT Computer and Infinitt Healthcare
The main advantage of trading using opposite BIT Computer and Infinitt Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BIT Computer 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.| BIT Computer vs. AptaBio Therapeutics | BIT Computer vs. KT Hitel | BIT Computer vs. SillaJen | BIT Computer vs. Cytogen |
| 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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