Correlation Between Infinitt Healthcare and BIT Computer
Can any of the company-specific risk be diversified away by investing in both Infinitt Healthcare and BIT Computer 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 BIT Computer 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 BIT Computer Co, you can compare the effects of market volatilities on Infinitt Healthcare and BIT Computer 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 BIT Computer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infinitt Healthcare and BIT Computer.
Diversification Opportunities for Infinitt Healthcare and BIT Computer
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Infinitt and BIT is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Infinitt Healthcare Co and BIT Computer Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BIT Computer 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 BIT Computer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BIT Computer has no effect on the direction of Infinitt Healthcare i.e., Infinitt Healthcare and BIT Computer go up and down completely randomly.
Pair Corralation between Infinitt Healthcare and BIT Computer
Assuming the 90 days trading horizon Infinitt Healthcare Co is expected to generate 1.17 times more return on investment than BIT Computer. However, Infinitt Healthcare is 1.17 times more volatile than BIT Computer Co. It trades about 0.14 of its potential returns per unit of risk. BIT Computer Co is currently generating about 0.05 per unit of risk. If you would invest 427,500 in Infinitt Healthcare Co on September 1, 2024 and sell it today you would earn a total of 22,500 from holding Infinitt Healthcare Co or generate 5.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Infinitt Healthcare Co vs. BIT Computer Co
Performance |
| Timeline |
| Infinitt Healthcare |
| BIT Computer |
Infinitt Healthcare and BIT Computer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Infinitt Healthcare and BIT Computer
The main advantage of trading using opposite Infinitt Healthcare and BIT Computer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infinitt Healthcare position performs unexpectedly, BIT Computer 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 BIT Computer will offset losses from the drop in BIT Computer's long position.| Infinitt Healthcare vs. AptaBio Therapeutics | Infinitt Healthcare vs. Daewoo SBI SPAC | Infinitt Healthcare vs. Dream Security co | Infinitt Healthcare vs. Microfriend |
| BIT Computer vs. AptaBio Therapeutics | BIT Computer vs. KT Hitel | BIT Computer vs. SillaJen | BIT Computer vs. Cytogen |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |