Correlation Between Infinity Capital and Erste Group
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By analyzing existing cross correlation between Infinity Capital Investments and Erste Group Bank, you can compare the effects of market volatilities on Infinity Capital and Erste Group 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 Infinity Capital with a short position of Erste Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infinity Capital and Erste Group.
Diversification Opportunities for Infinity Capital and Erste Group
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Infinity and Erste is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Infinity Capital Investments and Erste Group Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Erste Group Bank and Infinity Capital 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 Infinity Capital Investments are associated (or correlated) with Erste Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Erste Group Bank has no effect on the direction of Infinity Capital i.e., Infinity Capital and Erste Group go up and down completely randomly.
Pair Corralation between Infinity Capital and Erste Group
Assuming the 90 days trading horizon Infinity Capital is expected to generate 1.34 times less return on investment than Erste Group. But when comparing it to its historical volatility, Infinity Capital Investments is 1.28 times less risky than Erste Group. It trades about 0.07 of its potential returns per unit of risk. Erste Group Bank is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 16,634 in Erste Group Bank on August 27, 2024 and sell it today you would earn a total of 9,296 from holding Erste Group Bank or generate 55.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Infinity Capital Investments vs. Erste Group Bank
Performance |
| Timeline |
| Infinity Capital Inv |
| Erste Group Bank |
Infinity Capital and Erste Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Infinity Capital and Erste Group
The main advantage of trading using opposite Infinity Capital and Erste Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infinity Capital position performs unexpectedly, Erste Group 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 Erste Group will offset losses from the drop in Erste Group's long position.| Infinity Capital vs. Bermas SA | Infinity Capital vs. Remarul 16 Februarie | Infinity Capital vs. Norofert SA | Infinity Capital vs. Biofarm Bucure |
| Erste Group vs. AROBS TRANSILVANIA SOFTWARE | Erste Group vs. Biofarm Bucure | Erste Group vs. Digi Communications NV | Erste Group vs. GRUPUL INDUSTRIAL ELECTROCONTACT |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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