Correlation Between Infinitt Healthcare and Ssangyong Information
Can any of the company-specific risk be diversified away by investing in both Infinitt Healthcare and Ssangyong Information 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 Infinitt Healthcare and Ssangyong Information into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Infinitt Healthcare Co and Ssangyong Information Communication, you can compare the effects of market volatilities on Infinitt Healthcare and Ssangyong Information 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 Infinitt Healthcare with a short position of Ssangyong Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infinitt Healthcare and Ssangyong Information.
Diversification Opportunities for Infinitt Healthcare and Ssangyong Information
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Infinitt and Ssangyong is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Infinitt Healthcare Co and Ssangyong Information Communic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ssangyong Information and Infinitt 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 Infinitt Healthcare Co are associated (or correlated) with Ssangyong Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ssangyong Information has no effect on the direction of Infinitt Healthcare i.e., Infinitt Healthcare and Ssangyong Information go up and down completely randomly.
Pair Corralation between Infinitt Healthcare and Ssangyong Information
Assuming the 90 days trading horizon Infinitt Healthcare Co is expected to generate 1.19 times more return on investment than Ssangyong Information. However, Infinitt Healthcare is 1.19 times more volatile than Ssangyong Information Communication. It trades about -0.01 of its potential returns per unit of risk. Ssangyong Information Communication is currently generating about -0.03 per unit of risk. If you would invest 574,000 in Infinitt Healthcare Co on September 3, 2024 and sell it today you would lose (124,000) from holding Infinitt Healthcare Co or give up 21.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Infinitt Healthcare Co vs. Ssangyong Information Communic
Performance |
| Timeline |
| Infinitt Healthcare |
| Ssangyong Information |
Infinitt Healthcare and Ssangyong Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Infinitt Healthcare and Ssangyong Information
The main advantage of trading using opposite Infinitt Healthcare and Ssangyong Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infinitt Healthcare position performs unexpectedly, Ssangyong Information 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 Ssangyong Information will offset losses from the drop in Ssangyong Information's long position.| Infinitt Healthcare vs. AptaBio Therapeutics | Infinitt Healthcare vs. Daewoo SBI SPAC | Infinitt Healthcare vs. Dream Security co | Infinitt Healthcare vs. Microfriend |
| Ssangyong Information vs. SBI Investment KOREA | Ssangyong Information vs. Jeju Beer Co | Ssangyong Information vs. Coloray International Investment | Ssangyong Information vs. NH Investment Securities |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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