Correlation Between Infineon Technologies and Total SA
Can any of the company-specific risk be diversified away by investing in both Infineon Technologies and Total SA 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 Total SA 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 Total SA, you can compare the effects of market volatilities on Infineon Technologies and Total SA 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 Total SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infineon Technologies and Total SA.
Diversification Opportunities for Infineon Technologies and Total SA
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Infineon and Total is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Infineon Technologies AG and Total SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Total SA 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 Total SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Total SA has no effect on the direction of Infineon Technologies i.e., Infineon Technologies and Total SA go up and down completely randomly.
Pair Corralation between Infineon Technologies and Total SA
If you would invest 1,238,000 in Infineon Technologies AG on August 29, 2024 and sell it today you would earn a total of 30,600 from holding Infineon Technologies AG or generate 2.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Infineon Technologies AG vs. Total SA
Performance |
| Timeline |
| Infineon Technologies |
| Total SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Infineon Technologies and Total SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Infineon Technologies and Total SA
The main advantage of trading using opposite Infineon Technologies and Total SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infineon Technologies position performs unexpectedly, Total SA 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 Total SA will offset losses from the drop in Total SA'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 |
| Total SA vs. Infineon Technologies AG | Total SA vs. NordTelekom Telecommunications Service | Total SA vs. OTP Bank Nyrt | Total SA vs. Commerzbank AG |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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