Correlation Between INFINITT Healthcare and EV Advanced
Can any of the company-specific risk be diversified away by investing in both INFINITT Healthcare and EV Advanced 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 EV Advanced 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 EV Advanced Material, you can compare the effects of market volatilities on INFINITT Healthcare and EV Advanced 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 EV Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of INFINITT Healthcare and EV Advanced.
Diversification Opportunities for INFINITT Healthcare and EV Advanced
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between INFINITT and 131400 is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding INFINITT Healthcare Co and EV Advanced Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EV Advanced Material 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 EV Advanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EV Advanced Material has no effect on the direction of INFINITT Healthcare i.e., INFINITT Healthcare and EV Advanced go up and down completely randomly.
Pair Corralation between INFINITT Healthcare and EV Advanced
Assuming the 90 days trading horizon INFINITT Healthcare Co is expected to generate 0.88 times more return on investment than EV Advanced. However, INFINITT Healthcare Co is 1.14 times less risky than EV Advanced. It trades about -0.12 of its potential returns per unit of risk. EV Advanced Material is currently generating about -0.25 per unit of risk. If you would invest 423,000 in INFINITT Healthcare Co on November 7, 2024 and sell it today you would lose (13,000) from holding INFINITT Healthcare Co or give up 3.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 94.44% |
| Values | Daily Returns |
INFINITT Healthcare Co vs. EV Advanced Material
Performance |
| Timeline |
| INFINITT Healthcare |
| EV Advanced Material |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
INFINITT Healthcare and EV Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INFINITT Healthcare and EV Advanced
The main advantage of trading using opposite INFINITT Healthcare and EV Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INFINITT Healthcare position performs unexpectedly, EV Advanced 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 EV Advanced will offset losses from the drop in EV Advanced'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 |
| EV Advanced vs. Samsung Electronics Co | EV Advanced vs. Samsung Electronics Co | EV Advanced vs. Hyundai Motor Co | EV Advanced vs. Hyundai Motor |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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