Correlation Between INFINITT Healthcare and Youngsin Metal
Can any of the company-specific risk be diversified away by investing in both INFINITT Healthcare and Youngsin Metal 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 Youngsin Metal 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 Youngsin Metal Industrial, you can compare the effects of market volatilities on INFINITT Healthcare and Youngsin Metal 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 Youngsin Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of INFINITT Healthcare and Youngsin Metal.
Diversification Opportunities for INFINITT Healthcare and Youngsin Metal
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between INFINITT and Youngsin is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding INFINITT Healthcare Co and Youngsin Metal Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Youngsin Metal Industrial 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 Youngsin Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Youngsin Metal Industrial has no effect on the direction of INFINITT Healthcare i.e., INFINITT Healthcare and Youngsin Metal go up and down completely randomly.
Pair Corralation between INFINITT Healthcare and Youngsin Metal
Assuming the 90 days trading horizon INFINITT Healthcare Co is expected to under-perform the Youngsin Metal. But the stock apears to be less risky and, when comparing its historical volatility, INFINITT Healthcare Co is 3.68 times less risky than Youngsin Metal. The stock trades about -0.04 of its potential returns per unit of risk. The Youngsin Metal Industrial is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 199,900 in Youngsin Metal Industrial on October 11, 2024 and sell it today you would earn a total of 18,600 from holding Youngsin Metal Industrial or generate 9.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
INFINITT Healthcare Co vs. Youngsin Metal Industrial
Performance |
| Timeline |
| INFINITT Healthcare |
| Youngsin Metal Industrial |
INFINITT Healthcare and Youngsin Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INFINITT Healthcare and Youngsin Metal
The main advantage of trading using opposite INFINITT Healthcare and Youngsin Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INFINITT Healthcare position performs unexpectedly, Youngsin Metal 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 Youngsin Metal will offset losses from the drop in Youngsin Metal's long position.| INFINITT Healthcare vs. InfoBank | INFINITT Healthcare vs. BNK Financial Group | INFINITT Healthcare vs. SK Chemicals Co | INFINITT Healthcare vs. KPX Green Chemical |
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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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