Correlation Between Infinitt Healthcare and Synopex
Can any of the company-specific risk be diversified away by investing in both Infinitt Healthcare and Synopex 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 Synopex 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 Synopex, you can compare the effects of market volatilities on Infinitt Healthcare and Synopex 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 Synopex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infinitt Healthcare and Synopex.
Diversification Opportunities for Infinitt Healthcare and Synopex
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Infinitt and Synopex is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Infinitt Healthcare Co and Synopex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Synopex 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 Synopex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Synopex has no effect on the direction of Infinitt Healthcare i.e., Infinitt Healthcare and Synopex go up and down completely randomly.
Pair Corralation between Infinitt Healthcare and Synopex
Assuming the 90 days trading horizon Infinitt Healthcare Co is expected to under-perform the Synopex. But the stock apears to be less risky and, when comparing its historical volatility, Infinitt Healthcare Co is 2.48 times less risky than Synopex. The stock trades about -0.02 of its potential returns per unit of risk. The Synopex is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 375,714 in Synopex on September 12, 2024 and sell it today you would earn a total of 234,286 from holding Synopex or generate 62.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.8% |
| Values | Daily Returns |
Infinitt Healthcare Co vs. Synopex
Performance |
| Timeline |
| Infinitt Healthcare |
| Synopex |
Infinitt Healthcare and Synopex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Infinitt Healthcare and Synopex
The main advantage of trading using opposite Infinitt Healthcare and Synopex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infinitt Healthcare position performs unexpectedly, Synopex 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 Synopex will offset losses from the drop in Synopex's long position.| Infinitt Healthcare vs. Samsung Electronics Co | Infinitt Healthcare vs. Samsung Electronics Co | Infinitt Healthcare vs. SK Hynix | Infinitt Healthcare vs. POSCO Holdings |
| Synopex vs. Infinitt Healthcare Co | Synopex vs. Mgame Corp | Synopex vs. Netmarble Games Corp | Synopex vs. Next Entertainment World |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |