Correlation Between Coda Octopus and INFICON Holding
Can any of the company-specific risk be diversified away by investing in both Coda Octopus and INFICON Holding 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 Coda Octopus and INFICON Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coda Octopus Group and INFICON Holding AG, you can compare the effects of market volatilities on Coda Octopus and INFICON Holding 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 Coda Octopus with a short position of INFICON Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coda Octopus and INFICON Holding.
Diversification Opportunities for Coda Octopus and INFICON Holding
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Coda and INFICON is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Coda Octopus Group and INFICON Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INFICON Holding AG and Coda Octopus 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 Coda Octopus Group are associated (or correlated) with INFICON Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INFICON Holding AG has no effect on the direction of Coda Octopus i.e., Coda Octopus and INFICON Holding go up and down completely randomly.
Pair Corralation between Coda Octopus and INFICON Holding
If you would invest 126,000 in INFICON Holding AG on September 16, 2024 and sell it today you would earn a total of 0.00 from holding INFICON Holding AG or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Coda Octopus Group vs. INFICON Holding AG
Performance |
| Timeline |
| Coda Octopus Group |
| INFICON Holding AG |
Coda Octopus and INFICON Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coda Octopus and INFICON Holding
The main advantage of trading using opposite Coda Octopus and INFICON Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coda Octopus position performs unexpectedly, INFICON Holding 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 INFICON Holding will offset losses from the drop in INFICON Holding's long position.| Coda Octopus vs. Ducommun Incorporated | Coda Octopus vs. Park Electrochemical | Coda Octopus vs. National Presto Industries | Coda Octopus vs. Astronics |
| INFICON Holding vs. EvoAir Holdings | INFICON Holding vs. Coda Octopus Group | INFICON Holding vs. Westinghouse Air Brake | INFICON Holding vs. IPG Photonics |
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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