Correlation Between Infineon Technologies and Waberers
Can any of the company-specific risk be diversified away by investing in both Infineon Technologies and Waberers 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 Waberers 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 Waberers, you can compare the effects of market volatilities on Infineon Technologies and Waberers 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 Waberers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infineon Technologies and Waberers.
Diversification Opportunities for Infineon Technologies and Waberers
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Infineon and Waberers is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Infineon Technologies AG and Waberers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Waberers 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 Waberers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Waberers has no effect on the direction of Infineon Technologies i.e., Infineon Technologies and Waberers go up and down completely randomly.
Pair Corralation between Infineon Technologies and Waberers
Assuming the 90 days trading horizon Infineon Technologies is expected to generate 1.01 times less return on investment than Waberers. In addition to that, Infineon Technologies is 2.23 times more volatile than Waberers. It trades about 0.03 of its total potential returns per unit of risk. Waberers is currently generating about 0.07 per unit of volatility. If you would invest 286,152 in Waberers on September 14, 2024 and sell it today you would earn a total of 83,848 from holding Waberers or generate 29.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 57.84% |
| Values | Daily Returns |
Infineon Technologies AG vs. Waberers
Performance |
| Timeline |
| Infineon Technologies |
| Waberers |
Infineon Technologies and Waberers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Infineon Technologies and Waberers
The main advantage of trading using opposite Infineon Technologies and Waberers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infineon Technologies position performs unexpectedly, Waberers 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 Waberers will offset losses from the drop in Waberers' 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 |
| Waberers vs. OTP Bank Nyrt | Waberers vs. NordTelekom Telecommunications Service | Waberers vs. Deutsche Bank AG | Waberers vs. Infineon Technologies 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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