Correlation Between Incar Financial and INFINITT Healthcare
Can any of the company-specific risk be diversified away by investing in both Incar Financial 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 Incar Financial and INFINITT Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Incar Financial Service and INFINITT Healthcare Co, you can compare the effects of market volatilities on Incar Financial 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 Incar Financial with a short position of INFINITT Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Incar Financial and INFINITT Healthcare.
Diversification Opportunities for Incar Financial and INFINITT Healthcare
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Incar and INFINITT is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Incar Financial Service and INFINITT Healthcare Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INFINITT Healthcare and Incar Financial 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 Incar Financial Service 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 Incar Financial i.e., Incar Financial and INFINITT Healthcare go up and down completely randomly.
Pair Corralation between Incar Financial and INFINITT Healthcare
Assuming the 90 days trading horizon Incar Financial Service is expected to generate 1.5 times more return on investment than INFINITT Healthcare. However, Incar Financial is 1.5 times more volatile than INFINITT Healthcare Co. It trades about 0.11 of its potential returns per unit of risk. INFINITT Healthcare Co is currently generating about -0.02 per unit of risk. If you would invest 145,812 in Incar Financial Service on November 1, 2024 and sell it today you would earn a total of 448,188 from holding Incar Financial Service or generate 307.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.92% |
| Values | Daily Returns |
Incar Financial Service vs. INFINITT Healthcare Co
Performance |
| Timeline |
| Incar Financial Service |
| INFINITT Healthcare |
Incar Financial and INFINITT Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Incar Financial and INFINITT Healthcare
The main advantage of trading using opposite Incar Financial and INFINITT Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Incar Financial 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.| Incar Financial vs. ENF Technology Co | Incar Financial vs. Woori Technology | Incar Financial vs. HB Technology TD | Incar Financial vs. Coloray International Investment |
| INFINITT Healthcare vs. Tamul Multimedia Co | INFINITT Healthcare vs. SAMG Entertainment Co | INFINITT Healthcare vs. Yura Tech Co | INFINITT Healthcare vs. SKONEC Entertainment 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |