Correlation Between INFINITT Healthcare and N Citron
Can any of the company-specific risk be diversified away by investing in both INFINITT Healthcare and N Citron 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 N Citron 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 N Citron, you can compare the effects of market volatilities on INFINITT Healthcare and N Citron 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 N Citron. Check out your portfolio center. Please also check ongoing floating volatility patterns of INFINITT Healthcare and N Citron.
Diversification Opportunities for INFINITT Healthcare and N Citron
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between INFINITT and 101400 is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding INFINITT Healthcare Co and N Citron in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on N Citron 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 N Citron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of N Citron has no effect on the direction of INFINITT Healthcare i.e., INFINITT Healthcare and N Citron go up and down completely randomly.
Pair Corralation between INFINITT Healthcare and N Citron
Assuming the 90 days trading horizon INFINITT Healthcare Co is expected to generate 0.78 times more return on investment than N Citron. However, INFINITT Healthcare Co is 1.27 times less risky than N Citron. It trades about -0.04 of its potential returns per unit of risk. N Citron is currently generating about -0.08 per unit of risk. If you would invest 514,000 in INFINITT Healthcare Co on November 3, 2024 and sell it today you would lose (91,000) from holding INFINITT Healthcare Co or give up 17.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
INFINITT Healthcare Co vs. N Citron
Performance |
| Timeline |
| INFINITT Healthcare |
| N Citron |
INFINITT Healthcare and N Citron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INFINITT Healthcare and N Citron
The main advantage of trading using opposite INFINITT Healthcare and N Citron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INFINITT Healthcare position performs unexpectedly, N Citron 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 N Citron will offset losses from the drop in N Citron's long position.| INFINITT Healthcare vs. Samlip General Foods | INFINITT Healthcare vs. Incar Financial Service | INFINITT Healthcare vs. Dgb Financial | INFINITT Healthcare vs. CJ Seafood Corp |
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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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