Correlation Between INFINITT Healthcare and Genexine
Can any of the company-specific risk be diversified away by investing in both INFINITT Healthcare and Genexine 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 Genexine 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 Genexine, you can compare the effects of market volatilities on INFINITT Healthcare and Genexine 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 Genexine. Check out your portfolio center. Please also check ongoing floating volatility patterns of INFINITT Healthcare and Genexine.
Diversification Opportunities for INFINITT Healthcare and Genexine
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between INFINITT and Genexine is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding INFINITT Healthcare Co and Genexine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genexine 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 Genexine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genexine has no effect on the direction of INFINITT Healthcare i.e., INFINITT Healthcare and Genexine go up and down completely randomly.
Pair Corralation between INFINITT Healthcare and Genexine
Assuming the 90 days trading horizon INFINITT Healthcare Co is expected to generate 0.6 times more return on investment than Genexine. However, INFINITT Healthcare Co is 1.65 times less risky than Genexine. It trades about -0.03 of its potential returns per unit of risk. Genexine is currently generating about -0.03 per unit of risk. If you would invest 596,000 in INFINITT Healthcare Co on August 28, 2024 and sell it today you would lose (146,500) from holding INFINITT Healthcare Co or give up 24.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
INFINITT Healthcare Co vs. Genexine
Performance |
| Timeline |
| INFINITT Healthcare |
| Genexine |
INFINITT Healthcare and Genexine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INFINITT Healthcare and Genexine
The main advantage of trading using opposite INFINITT Healthcare and Genexine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INFINITT Healthcare position performs unexpectedly, Genexine 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 Genexine will offset losses from the drop in Genexine's long position.| INFINITT Healthcare vs. Medy Tox | INFINITT Healthcare vs. Busan Industrial Co | INFINITT Healthcare vs. Busan Ind | INFINITT Healthcare vs. Mirae Asset Daewoo |
| Genexine vs. Medy Tox | Genexine vs. Busan Industrial Co | Genexine vs. Busan Ind | Genexine vs. Mirae Asset Daewoo |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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