Correlation Between THiRA-UTECH and InfoBank
Can any of the company-specific risk be diversified away by investing in both THiRA-UTECH and InfoBank 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 THiRA-UTECH and InfoBank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between THiRA UTECH LTD and InfoBank, you can compare the effects of market volatilities on THiRA-UTECH and InfoBank 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 THiRA-UTECH with a short position of InfoBank. Check out your portfolio center. Please also check ongoing floating volatility patterns of THiRA-UTECH and InfoBank.
Diversification Opportunities for THiRA-UTECH and InfoBank
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between THiRA-UTECH and InfoBank is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding THiRA UTECH LTD and InfoBank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on InfoBank and THiRA-UTECH 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 THiRA UTECH LTD are associated (or correlated) with InfoBank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of InfoBank has no effect on the direction of THiRA-UTECH i.e., THiRA-UTECH and InfoBank go up and down completely randomly.
Pair Corralation between THiRA-UTECH and InfoBank
Assuming the 90 days trading horizon THiRA UTECH LTD is expected to under-perform the InfoBank. But the stock apears to be less risky and, when comparing its historical volatility, THiRA UTECH LTD is 1.98 times less risky than InfoBank. The stock trades about -0.13 of its potential returns per unit of risk. The InfoBank is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 550,000 in InfoBank on September 15, 2024 and sell it today you would earn a total of 146,000 from holding InfoBank or generate 26.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
THiRA UTECH LTD vs. InfoBank
Performance |
| Timeline |
| THiRA UTECH LTD |
| InfoBank |
THiRA-UTECH and InfoBank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with THiRA-UTECH and InfoBank
The main advantage of trading using opposite THiRA-UTECH and InfoBank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if THiRA-UTECH position performs unexpectedly, InfoBank 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 InfoBank will offset losses from the drop in InfoBank's long position.| THiRA-UTECH vs. Kakao Games Corp | THiRA-UTECH vs. Devsisters corporation | THiRA-UTECH vs. Konan Technology | THiRA-UTECH vs. Nice Information Telecommunication |
| InfoBank vs. Cube Entertainment | InfoBank vs. Dreamus Company | InfoBank vs. LG Energy Solution | InfoBank vs. Dongwon System |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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