Correlation Between Infinitt Healthcare and Daejung Chemicals
Can any of the company-specific risk be diversified away by investing in both Infinitt Healthcare and Daejung Chemicals 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 Daejung Chemicals 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 Daejung Chemicals Metals, you can compare the effects of market volatilities on Infinitt Healthcare and Daejung Chemicals 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 Daejung Chemicals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infinitt Healthcare and Daejung Chemicals.
Diversification Opportunities for Infinitt Healthcare and Daejung Chemicals
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Infinitt and Daejung is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Infinitt Healthcare Co and Daejung Chemicals Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daejung Chemicals Metals 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 Daejung Chemicals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daejung Chemicals Metals has no effect on the direction of Infinitt Healthcare i.e., Infinitt Healthcare and Daejung Chemicals go up and down completely randomly.
Pair Corralation between Infinitt Healthcare and Daejung Chemicals
Assuming the 90 days trading horizon Infinitt Healthcare Co is expected to generate 0.99 times more return on investment than Daejung Chemicals. However, Infinitt Healthcare Co is 1.01 times less risky than Daejung Chemicals. It trades about 0.1 of its potential returns per unit of risk. Daejung Chemicals Metals is currently generating about -0.17 per unit of risk. If you would invest 434,000 in Infinitt Healthcare Co on August 28, 2024 and sell it today you would earn a total of 15,500 from holding Infinitt Healthcare Co or generate 3.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Infinitt Healthcare Co vs. Daejung Chemicals Metals
Performance |
| Timeline |
| Infinitt Healthcare |
| Daejung Chemicals Metals |
Infinitt Healthcare and Daejung Chemicals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Infinitt Healthcare and Daejung Chemicals
The main advantage of trading using opposite Infinitt Healthcare and Daejung Chemicals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infinitt Healthcare position performs unexpectedly, Daejung Chemicals 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 Daejung Chemicals will offset losses from the drop in Daejung Chemicals' long position.| Infinitt Healthcare vs. AptaBio Therapeutics | Infinitt Healthcare vs. Daewoo SBI SPAC | Infinitt Healthcare vs. Dream Security co | Infinitt Healthcare vs. Microfriend |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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