Correlation Between INFINITT Healthcare and Ecoplastic
Can any of the company-specific risk be diversified away by investing in both INFINITT Healthcare and Ecoplastic 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 Ecoplastic 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 Ecoplastic, you can compare the effects of market volatilities on INFINITT Healthcare and Ecoplastic 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 Ecoplastic. Check out your portfolio center. Please also check ongoing floating volatility patterns of INFINITT Healthcare and Ecoplastic.
Diversification Opportunities for INFINITT Healthcare and Ecoplastic
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between INFINITT and Ecoplastic is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding INFINITT Healthcare Co and Ecoplastic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ecoplastic 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 Ecoplastic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ecoplastic has no effect on the direction of INFINITT Healthcare i.e., INFINITT Healthcare and Ecoplastic go up and down completely randomly.
Pair Corralation between INFINITT Healthcare and Ecoplastic
Assuming the 90 days trading horizon INFINITT Healthcare Co is expected to generate 0.78 times more return on investment than Ecoplastic. However, INFINITT Healthcare Co is 1.28 times less risky than Ecoplastic. It trades about 0.05 of its potential returns per unit of risk. Ecoplastic is currently generating about 0.04 per unit of risk. If you would invest 423,000 in INFINITT Healthcare Co on November 7, 2024 and sell it today you would earn a total of 5,500 from holding INFINITT Healthcare Co or generate 1.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
INFINITT Healthcare Co vs. Ecoplastic
Performance |
| Timeline |
| INFINITT Healthcare |
| Ecoplastic |
INFINITT Healthcare and Ecoplastic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INFINITT Healthcare and Ecoplastic
The main advantage of trading using opposite INFINITT Healthcare and Ecoplastic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INFINITT Healthcare position performs unexpectedly, Ecoplastic 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 Ecoplastic will offset losses from the drop in Ecoplastic's long position.| INFINITT Healthcare vs. Ewon Comfortech Co | INFINITT Healthcare vs. Heungkuk Metaltech CoLtd | INFINITT Healthcare vs. PH Tech Co | INFINITT Healthcare vs. FNSTech Co |
| Ecoplastic vs. INNOX Advanced Materials | Ecoplastic vs. Mobileleader CoLtd | Ecoplastic vs. Pan Entertainment Co | Ecoplastic vs. Hankukpackage 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |