Correlation Between INFINITT Healthcare and Puloon Technology
Can any of the company-specific risk be diversified away by investing in both INFINITT Healthcare and Puloon Technology 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 Puloon Technology 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 Puloon Technology, you can compare the effects of market volatilities on INFINITT Healthcare and Puloon Technology 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 Puloon Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of INFINITT Healthcare and Puloon Technology.
Diversification Opportunities for INFINITT Healthcare and Puloon Technology
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between INFINITT and Puloon is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding INFINITT Healthcare Co and Puloon Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Puloon Technology 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 Puloon Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Puloon Technology has no effect on the direction of INFINITT Healthcare i.e., INFINITT Healthcare and Puloon Technology go up and down completely randomly.
Pair Corralation between INFINITT Healthcare and Puloon Technology
Assuming the 90 days trading horizon INFINITT Healthcare Co is expected to under-perform the Puloon Technology. But the stock apears to be less risky and, when comparing its historical volatility, INFINITT Healthcare Co is 2.22 times less risky than Puloon Technology. The stock trades about -0.22 of its potential returns per unit of risk. The Puloon Technology is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 742,733 in Puloon Technology on October 15, 2024 and sell it today you would earn a total of 3,267 from holding Puloon Technology or generate 0.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
INFINITT Healthcare Co vs. Puloon Technology
Performance |
| Timeline |
| INFINITT Healthcare |
| Puloon Technology |
INFINITT Healthcare and Puloon Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INFINITT Healthcare and Puloon Technology
The main advantage of trading using opposite INFINITT Healthcare and Puloon Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INFINITT Healthcare position performs unexpectedly, Puloon Technology 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 Puloon Technology will offset losses from the drop in Puloon Technology's long position.| INFINITT Healthcare vs. Echomarketing CoLtd | INFINITT Healthcare vs. Union Materials Corp | INFINITT Healthcare vs. Hyundai Engineering Plastics | INFINITT Healthcare vs. Kakao Games Corp |
| Puloon Technology vs. INFINITT Healthcare Co | Puloon Technology vs. HB Technology TD | Puloon Technology vs. Hwangkum Steel Technology | Puloon Technology vs. GS Retail 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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