Correlation Between INFINITT Healthcare and Innometry
Can any of the company-specific risk be diversified away by investing in both INFINITT Healthcare and Innometry 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 Innometry 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 Innometry Co, you can compare the effects of market volatilities on INFINITT Healthcare and Innometry 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 Innometry. Check out your portfolio center. Please also check ongoing floating volatility patterns of INFINITT Healthcare and Innometry.
Diversification Opportunities for INFINITT Healthcare and Innometry
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between INFINITT and Innometry is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding INFINITT Healthcare Co and Innometry Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innometry 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 Innometry. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Innometry has no effect on the direction of INFINITT Healthcare i.e., INFINITT Healthcare and Innometry go up and down completely randomly.
Pair Corralation between INFINITT Healthcare and Innometry
Assuming the 90 days trading horizon INFINITT Healthcare Co is expected to generate 0.62 times more return on investment than Innometry. However, INFINITT Healthcare Co is 1.6 times less risky than Innometry. It trades about -0.07 of its potential returns per unit of risk. Innometry Co is currently generating about -0.08 per unit of risk. If you would invest 526,000 in INFINITT Healthcare Co on September 5, 2024 and sell it today you would lose (85,500) from holding INFINITT Healthcare Co or give up 16.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
INFINITT Healthcare Co vs. Innometry Co
Performance |
| Timeline |
| INFINITT Healthcare |
| Innometry |
INFINITT Healthcare and Innometry Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INFINITT Healthcare and Innometry
The main advantage of trading using opposite INFINITT Healthcare and Innometry positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INFINITT Healthcare position performs unexpectedly, Innometry 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 Innometry will offset losses from the drop in Innometry's long position.| INFINITT Healthcare vs. AptaBio Therapeutics | INFINITT Healthcare vs. KT Hitel | INFINITT Healthcare vs. SillaJen | INFINITT Healthcare vs. Cytogen |
| Innometry vs. Daesung Hi Tech Co | Innometry vs. Hyosung Chemical Corp | Innometry vs. INFINITT Healthcare Co | Innometry vs. Osang Healthcare Co,Ltd |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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