Correlation Between InfoBank and Incar Financial
Can any of the company-specific risk be diversified away by investing in both InfoBank and Incar Financial 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 InfoBank and Incar Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between InfoBank and Incar Financial Service, you can compare the effects of market volatilities on InfoBank and Incar Financial 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 InfoBank with a short position of Incar Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of InfoBank and Incar Financial.
Diversification Opportunities for InfoBank and Incar Financial
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between InfoBank and Incar is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding InfoBank and Incar Financial Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Incar Financial Service and InfoBank 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 InfoBank are associated (or correlated) with Incar Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Incar Financial Service has no effect on the direction of InfoBank i.e., InfoBank and Incar Financial go up and down completely randomly.
Pair Corralation between InfoBank and Incar Financial
Assuming the 90 days trading horizon InfoBank is expected to under-perform the Incar Financial. In addition to that, InfoBank is 1.11 times more volatile than Incar Financial Service. It trades about -0.03 of its total potential returns per unit of risk. Incar Financial Service is currently generating about 0.13 per unit of volatility. If you would invest 264,901 in Incar Financial Service on January 25, 2025 and sell it today you would earn a total of 517,099 from holding Incar Financial Service or generate 195.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.05% |
| Values | Daily Returns |
InfoBank vs. Incar Financial Service
Performance |
| Timeline |
| InfoBank |
| Incar Financial Service |
InfoBank and Incar Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with InfoBank and Incar Financial
The main advantage of trading using opposite InfoBank and Incar Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if InfoBank position performs unexpectedly, Incar Financial 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 Incar Financial will offset losses from the drop in Incar Financial's long position.| InfoBank vs. Seoam Machinery Industry | InfoBank vs. Semyung Electric Machinery | InfoBank vs. WooDeumGee Farm Co, | InfoBank vs. Tuksu Engineering ConstructionLtd |
| Incar Financial vs. Daewoo Engineering Construction | Incar Financial vs. Tuksu Engineering ConstructionLtd | Incar Financial vs. Hanshin Construction Co | Incar Financial vs. Seohee Construction 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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