Correlation Between Guerrilla and Infineon Technologies
Can any of the company-specific risk be diversified away by investing in both Guerrilla 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 Guerrilla and Infineon Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guerrilla RF and Infineon Technologies AG, you can compare the effects of market volatilities on Guerrilla 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 Guerrilla with a short position of Infineon Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guerrilla and Infineon Technologies.
Diversification Opportunities for Guerrilla and Infineon Technologies
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Guerrilla and Infineon is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Guerrilla RF and Infineon Technologies AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Infineon Technologies and Guerrilla 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 Guerrilla RF 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 Guerrilla i.e., Guerrilla and Infineon Technologies go up and down completely randomly.
Pair Corralation between Guerrilla and Infineon Technologies
If you would invest 4,082 in Infineon Technologies AG on August 31, 2024 and sell it today you would earn a total of 0.00 from holding Infineon Technologies AG or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Guerrilla RF vs. Infineon Technologies AG
Performance |
| Timeline |
| Guerrilla RF |
| Infineon Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Guerrilla and Infineon Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guerrilla and Infineon Technologies
The main advantage of trading using opposite Guerrilla and Infineon Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guerrilla 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.| Guerrilla vs. Power Integrations | Guerrilla vs. MACOM Technology Solutions | Guerrilla vs. Intchains Group Limited | Guerrilla vs. Vishay Intertechnology |
| Infineon Technologies vs. Renesas Electronics | Infineon Technologies vs. Power Integrations | Infineon Technologies vs. Rohm Co Ltd | Infineon Technologies vs. MACOM Technology Solutions |
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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