Correlation Between Inficon Holding and Alpine Select
Can any of the company-specific risk be diversified away by investing in both Inficon Holding and Alpine Select 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 Inficon Holding and Alpine Select into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inficon Holding and Alpine Select AG, you can compare the effects of market volatilities on Inficon Holding and Alpine Select 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 Inficon Holding with a short position of Alpine Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inficon Holding and Alpine Select.
Diversification Opportunities for Inficon Holding and Alpine Select
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Inficon and Alpine is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Inficon Holding and Alpine Select AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alpine Select AG and Inficon Holding 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 Inficon Holding are associated (or correlated) with Alpine Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alpine Select AG has no effect on the direction of Inficon Holding i.e., Inficon Holding and Alpine Select go up and down completely randomly.
Pair Corralation between Inficon Holding and Alpine Select
Assuming the 90 days trading horizon Inficon Holding is expected to under-perform the Alpine Select. But the stock apears to be less risky and, when comparing its historical volatility, Inficon Holding is 1.24 times less risky than Alpine Select. The stock trades about -0.24 of its potential returns per unit of risk. The Alpine Select AG is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 745.00 in Alpine Select AG on August 29, 2024 and sell it today you would earn a total of 5.00 from holding Alpine Select AG or generate 0.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 72.73% |
| Values | Daily Returns |
Inficon Holding vs. Alpine Select AG
Performance |
| Timeline |
| Inficon Holding |
| Alpine Select AG |
Inficon Holding and Alpine Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inficon Holding and Alpine Select
The main advantage of trading using opposite Inficon Holding and Alpine Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inficon Holding position performs unexpectedly, Alpine Select 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 Alpine Select will offset losses from the drop in Alpine Select's long position.| Inficon Holding vs. VAT Group AG | Inficon Holding vs. Comet Holding AG | Inficon Holding vs. Belimo Holding | Inficon Holding vs. Bachem Holding AG |
| Alpine Select vs. Santhera Pharmaceuticals Holding | Alpine Select vs. Newron Pharmaceuticals SpA | Alpine Select vs. Basilea Pharmaceutica AG | Alpine Select vs. Evolva Holding SA |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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