Correlation Between Infinity Capital and Farmaceutica
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By analyzing existing cross correlation between Infinity Capital Investments and Farmaceutica R, you can compare the effects of market volatilities on Infinity Capital and Farmaceutica 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 Farmaceutica. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infinity Capital and Farmaceutica.
Diversification Opportunities for Infinity Capital and Farmaceutica
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Infinity and Farmaceutica is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Infinity Capital Investments and Farmaceutica R in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Farmaceutica R 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 Farmaceutica. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Farmaceutica R has no effect on the direction of Infinity Capital i.e., Infinity Capital and Farmaceutica go up and down completely randomly.
Pair Corralation between Infinity Capital and Farmaceutica
Assuming the 90 days trading horizon Infinity Capital Investments is expected to generate 0.77 times more return on investment than Farmaceutica. However, Infinity Capital Investments is 1.29 times less risky than Farmaceutica. It trades about 0.12 of its potential returns per unit of risk. Farmaceutica R is currently generating about -0.02 per unit of risk. If you would invest 192.00 in Infinity Capital Investments on September 5, 2024 and sell it today you would earn a total of 44.00 from holding Infinity Capital Investments or generate 22.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Infinity Capital Investments vs. Farmaceutica R
Performance |
| Timeline |
| Infinity Capital Inv |
| Farmaceutica R |
Infinity Capital and Farmaceutica Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Infinity Capital and Farmaceutica
The main advantage of trading using opposite Infinity Capital and Farmaceutica positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infinity Capital position performs unexpectedly, Farmaceutica 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 Farmaceutica will offset losses from the drop in Farmaceutica's long position.| Infinity Capital vs. Bermas SA | Infinity Capital vs. Remarul 16 Februarie | Infinity Capital vs. TRANSILVANIA LEASING SI | Infinity Capital vs. Mecanica Sa Ce |
| Farmaceutica vs. AROBS TRANSILVANIA SOFTWARE | Farmaceutica vs. Biofarm Bucure | Farmaceutica vs. Infinity Capital Investments | Farmaceutica vs. Patria Bank 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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