Correlation Between Infineon Technologies and Alphawave
Can any of the company-specific risk be diversified away by investing in both Infineon Technologies and Alphawave 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 Infineon Technologies and Alphawave into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Infineon Technologies AG and Alphawave IP Group, you can compare the effects of market volatilities on Infineon Technologies and Alphawave 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 Infineon Technologies with a short position of Alphawave. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infineon Technologies and Alphawave.
Diversification Opportunities for Infineon Technologies and Alphawave
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Infineon and Alphawave is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Infineon Technologies AG and Alphawave IP Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alphawave IP Group and Infineon Technologies 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 Infineon Technologies AG are associated (or correlated) with Alphawave. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alphawave IP Group has no effect on the direction of Infineon Technologies i.e., Infineon Technologies and Alphawave go up and down completely randomly.
Pair Corralation between Infineon Technologies and Alphawave
If you would invest 114.00 in Alphawave IP Group on September 1, 2024 and sell it today you would earn a total of 40.00 from holding Alphawave IP Group or generate 35.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.37% |
| Values | Daily Returns |
Infineon Technologies AG vs. Alphawave IP Group
Performance |
| Timeline |
| Infineon Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Alphawave IP Group |
Infineon Technologies and Alphawave Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Infineon Technologies and Alphawave
The main advantage of trading using opposite Infineon Technologies and Alphawave positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infineon Technologies position performs unexpectedly, Alphawave 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 Alphawave will offset losses from the drop in Alphawave's long position.| Infineon Technologies vs. Renesas Electronics | Infineon Technologies vs. Power Integrations | Infineon Technologies vs. Rohm Co Ltd | Infineon Technologies vs. MACOM Technology Solutions |
| Alphawave vs. Power Integrations | Alphawave vs. MACOM Technology Solutions | Alphawave vs. Intchains Group Limited | Alphawave vs. Vishay Intertechnology |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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