Correlation Between Infinera and PAR Technology
Can any of the company-specific risk be diversified away by investing in both Infinera and PAR Technology 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 PAR Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Infinera and PAR Technology, you can compare the effects of market volatilities on Infinera and PAR Technology 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 PAR Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infinera and PAR Technology.
Diversification Opportunities for Infinera and PAR Technology
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Infinera and PAR is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Infinera and PAR Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PAR Technology 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 PAR Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PAR Technology has no effect on the direction of Infinera i.e., Infinera and PAR Technology go up and down completely randomly.
Pair Corralation between Infinera and PAR Technology
Given the investment horizon of 90 days Infinera is expected to generate 3.08 times less return on investment than PAR Technology. But when comparing it to its historical volatility, Infinera is 7.33 times less risky than PAR Technology. It trades about 0.1 of its potential returns per unit of risk. PAR Technology is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 7,151 in PAR Technology on November 3, 2024 and sell it today you would earn a total of 121.00 from holding PAR Technology or generate 1.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Infinera vs. PAR Technology
Performance |
| Timeline |
| Infinera |
| PAR Technology |
Infinera and PAR Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Infinera and PAR Technology
The main advantage of trading using opposite Infinera and PAR Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infinera position performs unexpectedly, PAR Technology 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 PAR Technology will offset losses from the drop in PAR Technology's long position.| Infinera vs. Juniper Networks | Infinera vs. Lumentum Holdings | Infinera vs. Extreme Networks | Infinera vs. Clearfield |
| PAR Technology vs. CS Disco LLC | PAR Technology vs. PROS Holdings | PAR Technology vs. Meridianlink | PAR Technology vs. Enfusion |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |