Correlation Between Infineon Technologies and IShares Core
Can any of the company-specific risk be diversified away by investing in both Infineon Technologies and IShares Core 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 IShares Core 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 iShares Core DAX, you can compare the effects of market volatilities on Infineon Technologies and IShares Core 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 IShares Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infineon Technologies and IShares Core.
Diversification Opportunities for Infineon Technologies and IShares Core
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Infineon and IShares is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Infineon Technologies AG and iShares Core DAX in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Core DAX 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 IShares Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Core DAX has no effect on the direction of Infineon Technologies i.e., Infineon Technologies and IShares Core go up and down completely randomly.
Pair Corralation between Infineon Technologies and IShares Core
Assuming the 90 days trading horizon Infineon Technologies is expected to generate 1.57 times less return on investment than IShares Core. In addition to that, Infineon Technologies is 2.62 times more volatile than iShares Core DAX. It trades about 0.02 of its total potential returns per unit of risk. iShares Core DAX is currently generating about 0.08 per unit of volatility. If you would invest 4,950,000 in iShares Core DAX on August 28, 2024 and sell it today you would earn a total of 1,685,000 from holding iShares Core DAX or generate 34.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 82.45% |
| Values | Daily Returns |
Infineon Technologies AG vs. iShares Core DAX
Performance |
| Timeline |
| Infineon Technologies |
| iShares Core DAX |
Infineon Technologies and IShares Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Infineon Technologies and IShares Core
The main advantage of trading using opposite Infineon Technologies and IShares Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infineon Technologies position performs unexpectedly, IShares Core 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 IShares Core will offset losses from the drop in IShares Core's long position.| Infineon Technologies vs. OTP Bank Nyrt | Infineon Technologies vs. MOL Nyrt | Infineon Technologies vs. OPUS GLOBAL Nyrt | Infineon Technologies vs. ALTEO Energiaszolgaltato Nyrt |
| IShares Core vs. CIG Pannonia Life | IShares Core vs. Infineon Technologies AG | IShares Core vs. AKKO Invest Nyrt | IShares Core vs. AutoWallis Nyrt |
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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