Correlation Between CIG Pannonia and Infineon Technologies
Can any of the company-specific risk be diversified away by investing in both CIG Pannonia 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 CIG Pannonia and Infineon Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CIG Pannonia Life and Infineon Technologies AG, you can compare the effects of market volatilities on CIG Pannonia 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 CIG Pannonia with a short position of Infineon Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of CIG Pannonia and Infineon Technologies.
Diversification Opportunities for CIG Pannonia and Infineon Technologies
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between CIG and Infineon is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding CIG Pannonia Life and Infineon Technologies AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Infineon Technologies and CIG Pannonia 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 CIG Pannonia Life 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 CIG Pannonia i.e., CIG Pannonia and Infineon Technologies go up and down completely randomly.
Pair Corralation between CIG Pannonia and Infineon Technologies
Assuming the 90 days trading horizon CIG Pannonia Life is expected to generate 0.51 times more return on investment than Infineon Technologies. However, CIG Pannonia Life is 1.97 times less risky than Infineon Technologies. It trades about 0.18 of its potential returns per unit of risk. Infineon Technologies AG is currently generating about 0.05 per unit of risk. If you would invest 34,500 in CIG Pannonia Life on August 28, 2024 and sell it today you would earn a total of 1,900 from holding CIG Pannonia Life or generate 5.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 60.0% |
| Values | Daily Returns |
CIG Pannonia Life vs. Infineon Technologies AG
Performance |
| Timeline |
| CIG Pannonia Life |
| Infineon Technologies |
CIG Pannonia and Infineon Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CIG Pannonia and Infineon Technologies
The main advantage of trading using opposite CIG Pannonia and Infineon Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CIG Pannonia 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.| CIG Pannonia vs. Appeninn Nyrt | CIG Pannonia vs. Raba Jarmuipari Holding | CIG Pannonia vs. NordTelekom Telecommunications Service | CIG Pannonia vs. OPUS GLOBAL Nyrt |
| Infineon Technologies vs. OTP Bank Nyrt | Infineon Technologies vs. MOL Nyrt | Infineon Technologies vs. OPUS GLOBAL Nyrt | Infineon Technologies vs. ALTEO Energiaszolgaltato Nyrt |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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