Correlation Between Infinitt Healthcare and Narae Nanotech
Can any of the company-specific risk be diversified away by investing in both Infinitt Healthcare and Narae Nanotech 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 Narae Nanotech 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 Narae Nanotech Corp, you can compare the effects of market volatilities on Infinitt Healthcare and Narae Nanotech 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 Narae Nanotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infinitt Healthcare and Narae Nanotech.
Diversification Opportunities for Infinitt Healthcare and Narae Nanotech
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Infinitt and Narae is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Infinitt Healthcare Co and Narae Nanotech Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Narae Nanotech Corp 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 Narae Nanotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Narae Nanotech Corp has no effect on the direction of Infinitt Healthcare i.e., Infinitt Healthcare and Narae Nanotech go up and down completely randomly.
Pair Corralation between Infinitt Healthcare and Narae Nanotech
Assuming the 90 days trading horizon Infinitt Healthcare Co is expected to generate 0.42 times more return on investment than Narae Nanotech. However, Infinitt Healthcare Co is 2.41 times less risky than Narae Nanotech. It trades about 0.28 of its potential returns per unit of risk. Narae Nanotech Corp is currently generating about -0.55 per unit of risk. If you would invest 410,500 in Infinitt Healthcare Co on October 28, 2024 and sell it today you would earn a total of 22,500 from holding Infinitt Healthcare Co or generate 5.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Infinitt Healthcare Co vs. Narae Nanotech Corp
Performance |
| Timeline |
| Infinitt Healthcare |
| Narae Nanotech Corp |
Infinitt Healthcare and Narae Nanotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Infinitt Healthcare and Narae Nanotech
The main advantage of trading using opposite Infinitt Healthcare and Narae Nanotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infinitt Healthcare position performs unexpectedly, Narae Nanotech 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 Narae Nanotech will offset losses from the drop in Narae Nanotech's long position.| Infinitt Healthcare vs. KB Financial Group | Infinitt Healthcare vs. Shinhan Financial Group | Infinitt Healthcare vs. Hana Financial | Infinitt Healthcare vs. Woori Financial Group |
| Narae Nanotech vs. SBI Investment KOREA | Narae Nanotech vs. Iljin Display | Narae Nanotech vs. EBEST Investment Securities | Narae Nanotech vs. PLAYWITH |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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