Correlation Between Infimer and Salomon A
Can any of the company-specific risk be diversified away by investing in both Infimer and Salomon A 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 Infimer and Salomon A into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Infimer and Salomon A Angel, you can compare the effects of market volatilities on Infimer and Salomon A 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 Infimer with a short position of Salomon A. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infimer and Salomon A.
Diversification Opportunities for Infimer and Salomon A
Excellent diversification
The 3 months correlation between Infimer and Salomon is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Infimer and Salomon A Angel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Salomon A Angel and Infimer 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 Infimer are associated (or correlated) with Salomon A. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Salomon A Angel has no effect on the direction of Infimer i.e., Infimer and Salomon A go up and down completely randomly.
Pair Corralation between Infimer and Salomon A
Assuming the 90 days trading horizon Infimer is expected to generate 98.79 times more return on investment than Salomon A. However, Infimer is 98.79 times more volatile than Salomon A Angel. It trades about 0.27 of its potential returns per unit of risk. Salomon A Angel is currently generating about 0.21 per unit of risk. If you would invest 2,190,000 in Infimer on August 30, 2024 and sell it today you would lose (2,189,850) from holding Infimer or give up 99.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Infimer vs. Salomon A Angel
Performance |
| Timeline |
| Infimer |
| Salomon A Angel |
Infimer and Salomon A Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Infimer and Salomon A
The main advantage of trading using opposite Infimer and Salomon A positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infimer position performs unexpectedly, Salomon A 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 Salomon A will offset losses from the drop in Salomon A's long position.| Infimer vs. Elbit Systems | Infimer vs. Bezeq Israeli Telecommunication | Infimer vs. Teva Pharmaceutical Industries | Infimer vs. Bank Leumi Le Israel |
| Salomon A vs. Zanlakol | Salomon A vs. Gan Shmuel | Salomon A vs. Carmit | Salomon A vs. Sano Brunos Enterprises |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |