Correlation Between Infinity Capital and Promateris
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By analyzing existing cross correlation between Infinity Capital Investments and Promateris SA, you can compare the effects of market volatilities on Infinity Capital and Promateris 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 Promateris. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infinity Capital and Promateris.
Diversification Opportunities for Infinity Capital and Promateris
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Infinity and Promateris is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Infinity Capital Investments and Promateris SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Promateris SA 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 Promateris. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Promateris SA has no effect on the direction of Infinity Capital i.e., Infinity Capital and Promateris go up and down completely randomly.
Pair Corralation between Infinity Capital and Promateris
Assuming the 90 days trading horizon Infinity Capital Investments is expected to generate 0.34 times more return on investment than Promateris. However, Infinity Capital Investments is 2.91 times less risky than Promateris. It trades about 0.07 of its potential returns per unit of risk. Promateris SA is currently generating about -0.02 per unit of risk. If you would invest 174.00 in Infinity Capital Investments on September 3, 2024 and sell it today you would earn a total of 66.00 from holding Infinity Capital Investments or generate 37.93% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 79.75% |
Values | Daily Returns |
Infinity Capital Investments vs. Promateris SA
Performance |
Timeline |
Infinity Capital Inv |
Promateris SA |
Infinity Capital and Promateris Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Infinity Capital and Promateris
The main advantage of trading using opposite Infinity Capital and Promateris positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infinity Capital position performs unexpectedly, Promateris 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 Promateris will offset losses from the drop in Promateris' long position.Infinity Capital vs. Patria Bank SA | Infinity Capital vs. IM Vinaria Purcari | Infinity Capital vs. AROBS TRANSILVANIA SOFTWARE | Infinity Capital vs. Safetech Innovations SA |
Promateris vs. Teraplast Bist | Promateris vs. Electroarges S | Promateris vs. Comvex SA | Promateris vs. Feper SA |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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