Correlation Between Infobird and MondayCom
Can any of the company-specific risk be diversified away by investing in both Infobird and MondayCom 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 MondayCom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Infobird Co and MondayCom, you can compare the effects of market volatilities on Infobird and MondayCom 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 MondayCom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infobird and MondayCom.
Diversification Opportunities for Infobird and MondayCom
Very weak diversification
The 3 months correlation between Infobird and MondayCom is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Infobird Co and MondayCom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MondayCom 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 MondayCom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MondayCom has no effect on the direction of Infobird i.e., Infobird and MondayCom go up and down completely randomly.
Pair Corralation between Infobird and MondayCom
Given the investment horizon of 90 days Infobird Co is expected to under-perform the MondayCom. In addition to that, Infobird is 1.52 times more volatile than MondayCom. It trades about -0.01 of its total potential returns per unit of risk. MondayCom is currently generating about 0.02 per unit of volatility. If you would invest 28,164 in MondayCom on August 25, 2024 and sell it today you would earn a total of 295.00 from holding MondayCom or generate 1.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Infobird Co vs. MondayCom
Performance |
| Timeline |
| Infobird |
| MondayCom |
Infobird and MondayCom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Infobird and MondayCom
The main advantage of trading using opposite Infobird and MondayCom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infobird position performs unexpectedly, MondayCom 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 MondayCom will offset losses from the drop in MondayCom's long position.The idea behind Infobird Co and MondayCom pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |