Correlation Between Infobird and Freshworks
Can any of the company-specific risk be diversified away by investing in both Infobird and Freshworks 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 Infobird and Freshworks into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Infobird Co and Freshworks, you can compare the effects of market volatilities on Infobird and Freshworks 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 Infobird with a short position of Freshworks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infobird and Freshworks.
Diversification Opportunities for Infobird and Freshworks
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Infobird and Freshworks is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Infobird Co and Freshworks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Freshworks and Infobird 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 Infobird Co are associated (or correlated) with Freshworks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Freshworks has no effect on the direction of Infobird i.e., Infobird and Freshworks go up and down completely randomly.
Pair Corralation between Infobird and Freshworks
Given the investment horizon of 90 days Infobird Co is expected to generate 1.62 times more return on investment than Freshworks. However, Infobird is 1.62 times more volatile than Freshworks. It trades about 0.17 of its potential returns per unit of risk. Freshworks is currently generating about 0.23 per unit of risk. 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 | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Infobird Co vs. Freshworks
Performance |
| Timeline |
| Infobird |
| Freshworks |
Infobird and Freshworks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Infobird and Freshworks
The main advantage of trading using opposite Infobird and Freshworks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infobird position performs unexpectedly, Freshworks 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 Freshworks will offset losses from the drop in Freshworks' long position.| Infobird vs. HeartCore Enterprises | Infobird vs. Beamr Imaging Ltd | Infobird vs. Trust Stamp | Infobird vs. CXApp Inc |
| Freshworks vs. Marin Software | Freshworks vs. EzFill Holdings | Freshworks vs. Trust Stamp | Freshworks vs. Infobird Co |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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