Correlation Between Infinitt Healthcare and SK Chemicals
Can any of the company-specific risk be diversified away by investing in both Infinitt Healthcare and SK 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 SK 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 SK Chemicals Co, you can compare the effects of market volatilities on Infinitt Healthcare and SK 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 SK Chemicals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infinitt Healthcare and SK Chemicals.
Diversification Opportunities for Infinitt Healthcare and SK Chemicals
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Infinitt and 28513K is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Infinitt Healthcare Co and SK Chemicals Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SK Chemicals 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 SK Chemicals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SK Chemicals has no effect on the direction of Infinitt Healthcare i.e., Infinitt Healthcare and SK Chemicals go up and down completely randomly.
Pair Corralation between Infinitt Healthcare and SK Chemicals
Assuming the 90 days trading horizon Infinitt Healthcare Co is expected to generate 1.29 times more return on investment than SK Chemicals. However, Infinitt Healthcare is 1.29 times more volatile than SK Chemicals Co. It trades about -0.05 of its potential returns per unit of risk. SK Chemicals Co is currently generating about -0.13 per unit of risk. If you would invest 543,000 in Infinitt Healthcare Co on September 4, 2024 and sell it today you would lose (110,000) from holding Infinitt Healthcare Co or give up 20.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.37% |
| Values | Daily Returns |
Infinitt Healthcare Co vs. SK Chemicals Co
Performance |
| Timeline |
| Infinitt Healthcare |
| SK Chemicals |
Infinitt Healthcare and SK Chemicals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Infinitt Healthcare and SK Chemicals
The main advantage of trading using opposite Infinitt Healthcare and SK Chemicals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infinitt Healthcare position performs unexpectedly, SK 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 SK Chemicals will offset losses from the drop in SK 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |