Correlation Between Infinitt Healthcare and Phoenix Materials
Can any of the company-specific risk be diversified away by investing in both Infinitt Healthcare and Phoenix Materials 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 Phoenix Materials 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 Phoenix Materials Co, you can compare the effects of market volatilities on Infinitt Healthcare and Phoenix Materials 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 Phoenix Materials. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infinitt Healthcare and Phoenix Materials.
Diversification Opportunities for Infinitt Healthcare and Phoenix Materials
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Infinitt and Phoenix is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Infinitt Healthcare Co and Phoenix Materials Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phoenix Materials 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 Phoenix Materials. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phoenix Materials has no effect on the direction of Infinitt Healthcare i.e., Infinitt Healthcare and Phoenix Materials go up and down completely randomly.
Pair Corralation between Infinitt Healthcare and Phoenix Materials
Assuming the 90 days trading horizon Infinitt Healthcare Co is expected to generate 0.45 times more return on investment than Phoenix Materials. However, Infinitt Healthcare Co is 2.21 times less risky than Phoenix Materials. It trades about -0.02 of its potential returns per unit of risk. Phoenix Materials Co is currently generating about -0.03 per unit of risk. If you would invest 507,000 in Infinitt Healthcare Co on September 12, 2024 and sell it today you would lose (85,000) from holding Infinitt Healthcare Co or give up 16.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.8% |
| Values | Daily Returns |
Infinitt Healthcare Co vs. Phoenix Materials Co
Performance |
| Timeline |
| Infinitt Healthcare |
| Phoenix Materials |
Infinitt Healthcare and Phoenix Materials Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Infinitt Healthcare and Phoenix Materials
The main advantage of trading using opposite Infinitt Healthcare and Phoenix Materials positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infinitt Healthcare position performs unexpectedly, Phoenix Materials 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 Phoenix Materials will offset losses from the drop in Phoenix Materials' long position.| Infinitt Healthcare vs. Samsung Electronics Co | Infinitt Healthcare vs. Samsung Electronics Co | Infinitt Healthcare vs. SK Hynix | Infinitt Healthcare vs. POSCO Holdings |
| Phoenix Materials vs. Organic Special Pet | Phoenix Materials vs. Infinitt Healthcare Co | Phoenix Materials vs. CKH Food Health | Phoenix Materials vs. CJ Seafood Corp |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |