Correlation Between Osang Healthcare and INFINITT Healthcare
Can any of the company-specific risk be diversified away by investing in both Osang Healthcare 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 Osang Healthcare and INFINITT Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Osang Healthcare Co,Ltd and INFINITT Healthcare Co, you can compare the effects of market volatilities on Osang Healthcare 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 Osang Healthcare with a short position of INFINITT Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Osang Healthcare and INFINITT Healthcare.
Diversification Opportunities for Osang Healthcare and INFINITT Healthcare
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Osang and INFINITT is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Osang Healthcare Co,Ltd and INFINITT Healthcare Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INFINITT Healthcare and Osang Healthcare 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 Osang Healthcare Co,Ltd 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 Osang Healthcare i.e., Osang Healthcare and INFINITT Healthcare go up and down completely randomly.
Pair Corralation between Osang Healthcare and INFINITT Healthcare
Assuming the 90 days trading horizon Osang Healthcare Co,Ltd is expected to under-perform the INFINITT Healthcare. In addition to that, Osang Healthcare is 1.76 times more volatile than INFINITT Healthcare Co. It trades about -0.13 of its total potential returns per unit of risk. INFINITT Healthcare Co is currently generating about -0.03 per unit of volatility. If you would invest 638,000 in INFINITT Healthcare Co on September 1, 2024 and sell it today you would lose (188,000) from holding INFINITT Healthcare Co or give up 29.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 39.73% |
| Values | Daily Returns |
Osang Healthcare Co,Ltd vs. INFINITT Healthcare Co
Performance |
| Timeline |
| Osang Healthcare Co,Ltd |
| INFINITT Healthcare |
Osang Healthcare and INFINITT Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Osang Healthcare and INFINITT Healthcare
The main advantage of trading using opposite Osang Healthcare and INFINITT Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Osang Healthcare 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.| Osang Healthcare vs. Samsung Electronics Co | Osang Healthcare vs. Samsung Electronics Co | Osang Healthcare vs. LG Energy Solution | Osang Healthcare vs. SK Hynix |
| INFINITT Healthcare vs. Netmarble Games Corp | INFINITT Healthcare vs. Kukdong Oil Chemicals | INFINITT Healthcare vs. Miwon Chemicals Co | INFINITT Healthcare vs. TJ media Co |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |