Correlation Between Infinitt Healthcare and ITM Semiconductor
Can any of the company-specific risk be diversified away by investing in both Infinitt Healthcare and ITM Semiconductor 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 ITM Semiconductor 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 ITM Semiconductor Co, you can compare the effects of market volatilities on Infinitt Healthcare and ITM Semiconductor 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 ITM Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infinitt Healthcare and ITM Semiconductor.
Diversification Opportunities for Infinitt Healthcare and ITM Semiconductor
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Infinitt and ITM is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Infinitt Healthcare Co and ITM Semiconductor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ITM Semiconductor 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 ITM Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ITM Semiconductor has no effect on the direction of Infinitt Healthcare i.e., Infinitt Healthcare and ITM Semiconductor go up and down completely randomly.
Pair Corralation between Infinitt Healthcare and ITM Semiconductor
Assuming the 90 days trading horizon Infinitt Healthcare Co is expected to generate 0.62 times more return on investment than ITM Semiconductor. However, Infinitt Healthcare Co is 1.6 times less risky than ITM Semiconductor. It trades about -0.02 of its potential returns per unit of risk. ITM Semiconductor Co is currently generating about -0.03 per unit of risk. If you would invest 603,000 in Infinitt Healthcare Co on November 27, 2024 and sell it today you would lose (163,000) from holding Infinitt Healthcare Co or give up 27.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 96.38% |
| Values | Daily Returns |
Infinitt Healthcare Co vs. ITM Semiconductor Co
Performance |
| Timeline |
| Infinitt Healthcare |
| ITM Semiconductor |
Infinitt Healthcare and ITM Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Infinitt Healthcare and ITM Semiconductor
The main advantage of trading using opposite Infinitt Healthcare and ITM Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infinitt Healthcare position performs unexpectedly, ITM Semiconductor 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 ITM Semiconductor will offset losses from the drop in ITM Semiconductor's long position.| Infinitt Healthcare vs. CKH Food Health | Infinitt Healthcare vs. LG Household Healthcare | Infinitt Healthcare vs. Osang Healthcare Co,Ltd | Infinitt Healthcare vs. LG Household Healthcare |
| ITM Semiconductor vs. Samyang Foods Co | ITM Semiconductor vs. Hankook Furniture Co | ITM Semiconductor vs. Jahwa Electronics Co | ITM Semiconductor vs. Samsung Publishing Co |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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