Correlation Between ANY Security and Infineon Technologies
Can any of the company-specific risk be diversified away by investing in both ANY Security and Infineon Technologies 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 ANY Security and Infineon Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ANY Security Printing and Infineon Technologies AG, you can compare the effects of market volatilities on ANY Security and Infineon Technologies 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 ANY Security with a short position of Infineon Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANY Security and Infineon Technologies.
Diversification Opportunities for ANY Security and Infineon Technologies
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ANY and Infineon is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding ANY Security Printing and Infineon Technologies AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Infineon Technologies and ANY Security 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 ANY Security Printing are associated (or correlated) with Infineon Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Infineon Technologies has no effect on the direction of ANY Security i.e., ANY Security and Infineon Technologies go up and down completely randomly.
Pair Corralation between ANY Security and Infineon Technologies
Assuming the 90 days trading horizon ANY Security Printing is expected to generate 0.27 times more return on investment than Infineon Technologies. However, ANY Security Printing is 3.76 times less risky than Infineon Technologies. It trades about 0.47 of its potential returns per unit of risk. Infineon Technologies AG is currently generating about 0.1 per unit of risk. If you would invest 460,000 in ANY Security Printing on December 6, 2024 and sell it today you would earn a total of 40,000 from holding ANY Security Printing or generate 8.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 73.91% |
| Values | Daily Returns |
ANY Security Printing vs. Infineon Technologies AG
Performance |
| Timeline |
| ANY Security Printing |
| Infineon Technologies |
ANY Security and Infineon Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANY Security and Infineon Technologies
The main advantage of trading using opposite ANY Security and Infineon Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANY Security position performs unexpectedly, Infineon Technologies 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 Infineon Technologies will offset losses from the drop in Infineon Technologies' long position.| ANY Security vs. NordTelekom Telecommunications Service | ANY Security vs. Infineon Technologies AG | ANY Security vs. Commerzbank AG |
| Infineon Technologies vs. OTP Bank Nyrt | Infineon Technologies vs. NordTelekom Telecommunications Service | Infineon Technologies vs. Delta Technologies Nyrt | Infineon Technologies vs. Commerzbank AG |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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