Correlation Between Infinitt Healthcare and DONGKUK TED
Can any of the company-specific risk be diversified away by investing in both Infinitt Healthcare and DONGKUK TED 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 DONGKUK TED 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 DONGKUK TED METAL, you can compare the effects of market volatilities on Infinitt Healthcare and DONGKUK TED 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 DONGKUK TED. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infinitt Healthcare and DONGKUK TED.
Diversification Opportunities for Infinitt Healthcare and DONGKUK TED
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Infinitt and DONGKUK is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Infinitt Healthcare Co and DONGKUK TED METAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DONGKUK TED METAL 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 DONGKUK TED. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DONGKUK TED METAL has no effect on the direction of Infinitt Healthcare i.e., Infinitt Healthcare and DONGKUK TED go up and down completely randomly.
Pair Corralation between Infinitt Healthcare and DONGKUK TED
Assuming the 90 days trading horizon Infinitt Healthcare Co is expected to generate 0.81 times more return on investment than DONGKUK TED. However, Infinitt Healthcare Co is 1.24 times less risky than DONGKUK TED. It trades about -0.03 of its potential returns per unit of risk. DONGKUK TED METAL is currently generating about -0.08 per unit of risk. If you would invest 671,000 in Infinitt Healthcare Co on October 25, 2024 and sell it today you would lose (241,500) from holding Infinitt Healthcare Co or give up 35.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 78.24% |
| Values | Daily Returns |
Infinitt Healthcare Co vs. DONGKUK TED METAL
Performance |
| Timeline |
| Infinitt Healthcare |
| DONGKUK TED METAL |
Infinitt Healthcare and DONGKUK TED Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Infinitt Healthcare and DONGKUK TED
The main advantage of trading using opposite Infinitt Healthcare and DONGKUK TED positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infinitt Healthcare position performs unexpectedly, DONGKUK TED 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 DONGKUK TED will offset losses from the drop in DONGKUK TED'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 |
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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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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