Correlation Between Advanced Braking and Infomedia
Can any of the company-specific risk be diversified away by investing in both Advanced Braking and Infomedia 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 Advanced Braking and Infomedia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Advanced Braking Technology and Infomedia, you can compare the effects of market volatilities on Advanced Braking and Infomedia 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 Advanced Braking with a short position of Infomedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advanced Braking and Infomedia.
Diversification Opportunities for Advanced Braking and Infomedia
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Advanced and Infomedia is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Braking Technology and Infomedia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Infomedia and Advanced Braking 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 Advanced Braking Technology are associated (or correlated) with Infomedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Infomedia has no effect on the direction of Advanced Braking i.e., Advanced Braking and Infomedia go up and down completely randomly.
Pair Corralation between Advanced Braking and Infomedia
Assuming the 90 days trading horizon Advanced Braking Technology is expected to generate 1.23 times more return on investment than Infomedia. However, Advanced Braking is 1.23 times more volatile than Infomedia. It trades about 0.08 of its potential returns per unit of risk. Infomedia is currently generating about 0.0 per unit of risk. If you would invest 3.90 in Advanced Braking Technology on August 31, 2024 and sell it today you would earn a total of 4.20 from holding Advanced Braking Technology or generate 107.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advanced Braking Technology vs. Infomedia
Performance |
| Timeline |
| Advanced Braking Tec |
| Infomedia |
Advanced Braking and Infomedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advanced Braking and Infomedia
The main advantage of trading using opposite Advanced Braking and Infomedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advanced Braking position performs unexpectedly, Infomedia 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 Infomedia will offset losses from the drop in Infomedia's long position.| Advanced Braking vs. Clime Investment Management | Advanced Braking vs. Sonic Healthcare | Advanced Braking vs. Event Hospitality and | Advanced Braking vs. Singular Health Group |
| Infomedia vs. Amani Gold | Infomedia vs. A1 Investments Resources | Infomedia vs. Coronado Global Resources | Infomedia vs. Hutchison Telecommunications |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |