Correlation Between Infinitt Healthcare and Ecocab
Can any of the company-specific risk be diversified away by investing in both Infinitt Healthcare and Ecocab 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 Ecocab 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 Ecocab Co, you can compare the effects of market volatilities on Infinitt Healthcare and Ecocab 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 Ecocab. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infinitt Healthcare and Ecocab.
Diversification Opportunities for Infinitt Healthcare and Ecocab
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Infinitt and Ecocab is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Infinitt Healthcare Co and Ecocab Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ecocab 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 Ecocab. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ecocab has no effect on the direction of Infinitt Healthcare i.e., Infinitt Healthcare and Ecocab go up and down completely randomly.
Pair Corralation between Infinitt Healthcare and Ecocab
Assuming the 90 days trading horizon Infinitt Healthcare is expected to generate 167.35 times less return on investment than Ecocab. But when comparing it to its historical volatility, Infinitt Healthcare Co is 5.45 times less risky than Ecocab. It trades about 0.0 of its potential returns per unit of risk. Ecocab Co is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 131,700 in Ecocab Co on September 4, 2024 and sell it today you would earn a total of 30,900 from holding Ecocab Co or generate 23.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Infinitt Healthcare Co vs. Ecocab Co
Performance |
| Timeline |
| Infinitt Healthcare |
| Ecocab |
Infinitt Healthcare and Ecocab Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Infinitt Healthcare and Ecocab
The main advantage of trading using opposite Infinitt Healthcare and Ecocab positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infinitt Healthcare position performs unexpectedly, Ecocab 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 Ecocab will offset losses from the drop in Ecocab's long position.| Infinitt Healthcare vs. AptaBio Therapeutics | Infinitt Healthcare vs. Daewoo SBI SPAC | Infinitt Healthcare vs. Dream Security co | Infinitt Healthcare vs. Microfriend |
| Ecocab vs. T3 Entertainment Co | Ecocab vs. Tamul Multimedia Co | Ecocab vs. Aprogen Healthcare Games | Ecocab vs. Infinitt Healthcare 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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