Correlation Between EvoAir Holdings and INFICON Holding
Can any of the company-specific risk be diversified away by investing in both EvoAir Holdings 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 EvoAir Holdings and INFICON Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EvoAir Holdings and INFICON Holding AG, you can compare the effects of market volatilities on EvoAir Holdings 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 EvoAir Holdings with a short position of INFICON Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of EvoAir Holdings and INFICON Holding.
Diversification Opportunities for EvoAir Holdings and INFICON Holding
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between EvoAir and INFICON is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding EvoAir Holdings 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 EvoAir Holdings 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 EvoAir Holdings 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 EvoAir Holdings i.e., EvoAir Holdings and INFICON Holding go up and down completely randomly.
Pair Corralation between EvoAir Holdings and INFICON Holding
Assuming the 90 days horizon EvoAir Holdings is expected to generate 14.87 times less return on investment than INFICON Holding. But when comparing it to its historical volatility, EvoAir Holdings is 10.97 times less risky than INFICON Holding. It trades about 0.04 of its potential returns per unit of risk. INFICON Holding AG is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 72,109 in INFICON Holding AG on September 16, 2024 and sell it today you would earn a total of 53,891 from holding INFICON Holding AG or generate 74.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
EvoAir Holdings vs. INFICON Holding AG
Performance |
| Timeline |
| EvoAir Holdings |
| INFICON Holding AG |
EvoAir Holdings and INFICON Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EvoAir Holdings and INFICON Holding
The main advantage of trading using opposite EvoAir Holdings and INFICON Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EvoAir Holdings 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.| EvoAir Holdings vs. Legacy Education | EvoAir Holdings vs. Apple Inc | EvoAir Holdings vs. NVIDIA | EvoAir Holdings vs. Microsoft |
| 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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