Correlation Between Applied Blockchain and Infineon Technologies
Can any of the company-specific risk be diversified away by investing in both Applied Blockchain 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 Applied Blockchain and Infineon Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Applied Blockchain and Infineon Technologies AG, you can compare the effects of market volatilities on Applied Blockchain 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 Applied Blockchain with a short position of Infineon Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Applied Blockchain and Infineon Technologies.
Diversification Opportunities for Applied Blockchain and Infineon Technologies
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Applied and Infineon is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Applied Blockchain and Infineon Technologies AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Infineon Technologies and Applied Blockchain 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 Applied Blockchain 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 Applied Blockchain i.e., Applied Blockchain and Infineon Technologies go up and down completely randomly.
Pair Corralation between Applied Blockchain and Infineon Technologies
Given the investment horizon of 90 days Applied Blockchain is expected to generate 2.75 times more return on investment than Infineon Technologies. However, Applied Blockchain is 2.75 times more volatile than Infineon Technologies AG. It trades about 0.16 of its potential returns per unit of risk. Infineon Technologies AG is currently generating about -0.02 per unit of risk. If you would invest 827.00 in Applied Blockchain on August 29, 2024 and sell it today you would earn a total of 186.00 from holding Applied Blockchain or generate 22.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Applied Blockchain vs. Infineon Technologies AG
Performance |
| Timeline |
| Applied Blockchain |
| Infineon Technologies |
Applied Blockchain and Infineon Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Applied Blockchain and Infineon Technologies
The main advantage of trading using opposite Applied Blockchain and Infineon Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Applied Blockchain 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.| Applied Blockchain vs. Magic Empire Global | Applied Blockchain vs. Zhong Yang Financial | Applied Blockchain vs. Netcapital | Applied Blockchain vs. Lazard |
| Infineon Technologies vs. NVIDIA | Infineon Technologies vs. Intel | Infineon Technologies vs. Taiwan Semiconductor Manufacturing | Infineon Technologies vs. Marvell Technology Group |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| 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 | |
| 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 | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Global Correlations Find global opportunities by holding instruments from different markets |