Correlation Between Infinera and Eshallgo
Can any of the company-specific risk be diversified away by investing in both Infinera and Eshallgo 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 Infinera and Eshallgo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Infinera and Eshallgo Class A, you can compare the effects of market volatilities on Infinera and Eshallgo 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 Infinera with a short position of Eshallgo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infinera and Eshallgo.
Diversification Opportunities for Infinera and Eshallgo
Pay attention - limited upside
The 3 months correlation between Infinera and Eshallgo is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Infinera and Eshallgo Class A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eshallgo Class A and Infinera 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 Infinera are associated (or correlated) with Eshallgo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eshallgo Class A has no effect on the direction of Infinera i.e., Infinera and Eshallgo go up and down completely randomly.
Pair Corralation between Infinera and Eshallgo
Given the investment horizon of 90 days Infinera is expected to generate 0.04 times more return on investment than Eshallgo. However, Infinera is 28.16 times less risky than Eshallgo. It trades about -0.02 of its potential returns per unit of risk. Eshallgo Class A is currently generating about -0.05 per unit of risk. If you would invest 661.00 in Infinera on October 11, 2024 and sell it today you would lose (1.00) from holding Infinera or give up 0.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Infinera vs. Eshallgo Class A
Performance |
| Timeline |
| Infinera |
| Eshallgo Class A |
Infinera and Eshallgo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Infinera and Eshallgo
The main advantage of trading using opposite Infinera and Eshallgo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infinera position performs unexpectedly, Eshallgo 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 Eshallgo will offset losses from the drop in Eshallgo's long position.| Infinera vs. Juniper Networks | Infinera vs. Lumentum Holdings | Infinera vs. Extreme Networks | Infinera vs. Clearfield |
| Eshallgo vs. Old Dominion Freight | Eshallgo vs. Yuexiu Transport Infrastructure | Eshallgo vs. CDW Corp | Eshallgo vs. Sun Country Airlines |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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