Correlation Between INFINITT Healthcare and Youngbo Chemical
Can any of the company-specific risk be diversified away by investing in both INFINITT Healthcare and Youngbo Chemical 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 Youngbo Chemical 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 Youngbo Chemical Co, you can compare the effects of market volatilities on INFINITT Healthcare and Youngbo Chemical 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 Youngbo Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of INFINITT Healthcare and Youngbo Chemical.
Diversification Opportunities for INFINITT Healthcare and Youngbo Chemical
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between INFINITT and Youngbo is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding INFINITT Healthcare Co and Youngbo Chemical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Youngbo Chemical 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 Youngbo Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Youngbo Chemical has no effect on the direction of INFINITT Healthcare i.e., INFINITT Healthcare and Youngbo Chemical go up and down completely randomly.
Pair Corralation between INFINITT Healthcare and Youngbo Chemical
Assuming the 90 days trading horizon INFINITT Healthcare is expected to generate 6.64 times less return on investment than Youngbo Chemical. But when comparing it to its historical volatility, INFINITT Healthcare Co is 1.38 times less risky than Youngbo Chemical. It trades about 0.07 of its potential returns per unit of risk. Youngbo Chemical Co is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 372,500 in Youngbo Chemical Co on November 4, 2024 and sell it today you would earn a total of 36,000 from holding Youngbo Chemical Co or generate 9.66% 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. Youngbo Chemical Co
Performance |
| Timeline |
| INFINITT Healthcare |
| Youngbo Chemical |
INFINITT Healthcare and Youngbo Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INFINITT Healthcare and Youngbo Chemical
The main advantage of trading using opposite INFINITT Healthcare and Youngbo Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INFINITT Healthcare position performs unexpectedly, Youngbo Chemical 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 Youngbo Chemical will offset losses from the drop in Youngbo Chemical's long position.The idea behind INFINITT Healthcare Co and Youngbo Chemical Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Youngbo Chemical vs. Seoul Food Industrial | Youngbo Chemical vs. SH Energy Chemical | Youngbo Chemical vs. Hyundai Green Food | Youngbo Chemical vs. Dongnam Chemical 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Stocks Directory Find actively traded stocks across global markets | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |