Correlation Between Infinitt Healthcare and Finebesteel
Can any of the company-specific risk be diversified away by investing in both Infinitt Healthcare and Finebesteel 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 Finebesteel 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 Finebesteel, you can compare the effects of market volatilities on Infinitt Healthcare and Finebesteel 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 Finebesteel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infinitt Healthcare and Finebesteel.
Diversification Opportunities for Infinitt Healthcare and Finebesteel
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Infinitt and Finebesteel is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Infinitt Healthcare Co and Finebesteel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Finebesteel 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 Finebesteel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Finebesteel has no effect on the direction of Infinitt Healthcare i.e., Infinitt Healthcare and Finebesteel go up and down completely randomly.
Pair Corralation between Infinitt Healthcare and Finebesteel
Assuming the 90 days trading horizon Infinitt Healthcare Co is expected to generate 0.78 times more return on investment than Finebesteel. However, Infinitt Healthcare Co is 1.28 times less risky than Finebesteel. It trades about 0.0 of its potential returns per unit of risk. Finebesteel is currently generating about -0.04 per unit of risk. If you would invest 518,000 in Infinitt Healthcare Co on August 28, 2024 and sell it today you would lose (68,500) from holding Infinitt Healthcare Co or give up 13.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.63% |
| Values | Daily Returns |
Infinitt Healthcare Co vs. Finebesteel
Performance |
| Timeline |
| Infinitt Healthcare |
| Finebesteel |
Infinitt Healthcare and Finebesteel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Infinitt Healthcare and Finebesteel
The main advantage of trading using opposite Infinitt Healthcare and Finebesteel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infinitt Healthcare position performs unexpectedly, Finebesteel 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 Finebesteel will offset losses from the drop in Finebesteel's long position.| Infinitt Healthcare vs. AptaBio Therapeutics | Infinitt Healthcare vs. Daewoo SBI SPAC | Infinitt Healthcare vs. Dream Security co | Infinitt Healthcare vs. Microfriend |
| Finebesteel vs. ABOV Semiconductor Co | Finebesteel vs. HJ ShipBuilding Construction | Finebesteel vs. SEOJEON ELECTRIC MACHINERY | Finebesteel vs. Seoul Semiconductor 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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