Correlation Between Tamul Multimedia and INFINITT Healthcare
Can any of the company-specific risk be diversified away by investing in both Tamul Multimedia and INFINITT Healthcare 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 Tamul Multimedia and INFINITT Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tamul Multimedia Co and INFINITT Healthcare Co, you can compare the effects of market volatilities on Tamul Multimedia and INFINITT Healthcare 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 Tamul Multimedia with a short position of INFINITT Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tamul Multimedia and INFINITT Healthcare.
Diversification Opportunities for Tamul Multimedia and INFINITT Healthcare
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Tamul and INFINITT is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Tamul Multimedia Co and INFINITT Healthcare Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INFINITT Healthcare and Tamul Multimedia 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 Tamul Multimedia Co are associated (or correlated) with INFINITT Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INFINITT Healthcare has no effect on the direction of Tamul Multimedia i.e., Tamul Multimedia and INFINITT Healthcare go up and down completely randomly.
Pair Corralation between Tamul Multimedia and INFINITT Healthcare
Assuming the 90 days trading horizon Tamul Multimedia Co is expected to under-perform the INFINITT Healthcare. In addition to that, Tamul Multimedia is 2.86 times more volatile than INFINITT Healthcare Co. It trades about -0.44 of its total potential returns per unit of risk. INFINITT Healthcare Co is currently generating about 0.14 per unit of volatility. If you would invest 421,000 in INFINITT Healthcare Co on November 8, 2024 and sell it today you would earn a total of 17,500 from holding INFINITT Healthcare Co or generate 4.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tamul Multimedia Co vs. INFINITT Healthcare Co
Performance |
| Timeline |
| Tamul Multimedia |
| INFINITT Healthcare |
Tamul Multimedia and INFINITT Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tamul Multimedia and INFINITT Healthcare
The main advantage of trading using opposite Tamul Multimedia and INFINITT Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tamul Multimedia position performs unexpectedly, INFINITT Healthcare 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 INFINITT Healthcare will offset losses from the drop in INFINITT Healthcare's long position.| Tamul Multimedia vs. Sangsangin Investment Securities | Tamul Multimedia vs. TS Investment Corp | Tamul Multimedia vs. Stic Investments | Tamul Multimedia vs. GS Retail Co |
| INFINITT Healthcare vs. Asiana Airlines | INFINITT Healthcare vs. SungMoon Electronics Co | INFINITT Healthcare vs. Korea Petro Chemical | INFINITT Healthcare vs. Hankook Furniture 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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