Correlation Between Infinitt Healthcare and HMM
Can any of the company-specific risk be diversified away by investing in both Infinitt Healthcare and HMM 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 HMM 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 HMM Co, you can compare the effects of market volatilities on Infinitt Healthcare and HMM 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 HMM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infinitt Healthcare and HMM.
Diversification Opportunities for Infinitt Healthcare and HMM
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Infinitt and HMM is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Infinitt Healthcare Co and HMM Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HMM Co 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 HMM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HMM Co has no effect on the direction of Infinitt Healthcare i.e., Infinitt Healthcare and HMM go up and down completely randomly.
Pair Corralation between Infinitt Healthcare and HMM
Assuming the 90 days trading horizon Infinitt Healthcare is expected to generate 1.06 times less return on investment than HMM. But when comparing it to its historical volatility, Infinitt Healthcare Co is 2.97 times less risky than HMM. It trades about 0.24 of its potential returns per unit of risk. HMM Co is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,802,000 in HMM Co on October 26, 2024 and sell it today you would earn a total of 79,000 from holding HMM Co or generate 4.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Infinitt Healthcare Co vs. HMM Co
Performance |
| Timeline |
| Infinitt Healthcare |
| HMM Co |
Infinitt Healthcare and HMM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Infinitt Healthcare and HMM
The main advantage of trading using opposite Infinitt Healthcare and HMM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infinitt Healthcare position performs unexpectedly, HMM 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 HMM will offset losses from the drop in HMM's long position.| Infinitt Healthcare vs. Tae Kyung Chemical | Infinitt Healthcare vs. SeAH Besteel Corp | Infinitt Healthcare vs. Wonil Special Steel | Infinitt Healthcare vs. Korea Petro Chemical |
| HMM vs. Dongbang Transport Logistics | HMM vs. BGF Retail Co | HMM vs. Shinhan Inverse Copper | HMM vs. Youngsin Metal Industrial |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |