Correlation Between Global Business and Infobird
Can any of the company-specific risk be diversified away by investing in both Global Business and Infobird 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 Global Business and Infobird into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Business Travel and Infobird Co, you can compare the effects of market volatilities on Global Business and Infobird 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 Global Business with a short position of Infobird. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Business and Infobird.
Diversification Opportunities for Global Business and Infobird
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Global and Infobird is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Global Business Travel and Infobird Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Infobird and Global Business 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 Global Business Travel are associated (or correlated) with Infobird. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Infobird has no effect on the direction of Global Business i.e., Global Business and Infobird go up and down completely randomly.
Pair Corralation between Global Business and Infobird
Given the investment horizon of 90 days Global Business is expected to generate 2.32 times less return on investment than Infobird. But when comparing it to its historical volatility, Global Business Travel is 3.57 times less risky than Infobird. It trades about 0.26 of its potential returns per unit of risk. Infobird Co is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 195.00 in Infobird Co on August 30, 2024 and sell it today you would earn a total of 69.00 from holding Infobird Co or generate 35.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global Business Travel vs. Infobird Co
Performance |
| Timeline |
| Global Business Travel |
| Infobird |
Global Business and Infobird Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Business and Infobird
The main advantage of trading using opposite Global Business and Infobird positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Business position performs unexpectedly, Infobird 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 Infobird will offset losses from the drop in Infobird's long position.| Global Business vs. Envestnet | Global Business vs. Meridianlink | Global Business vs. Alkami Technology | Global Business vs. Blackbaud |
| Infobird vs. HeartCore Enterprises | Infobird vs. Beamr Imaging Ltd | Infobird vs. Trust Stamp | Infobird vs. CXApp Inc |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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