Correlation Between Infimer and Plaza Centers
Can any of the company-specific risk be diversified away by investing in both Infimer and Plaza Centers 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 Plaza Centers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Infimer and Plaza Centers NV, you can compare the effects of market volatilities on Infimer and Plaza Centers 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 Plaza Centers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infimer and Plaza Centers.
Diversification Opportunities for Infimer and Plaza Centers
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Infimer and Plaza is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Infimer and Plaza Centers NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Plaza Centers NV 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 Plaza Centers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Plaza Centers NV has no effect on the direction of Infimer i.e., Infimer and Plaza Centers go up and down completely randomly.
Pair Corralation between Infimer and Plaza Centers
Assuming the 90 days trading horizon Infimer is expected to generate 12.56 times more return on investment than Plaza Centers. However, Infimer is 12.56 times more volatile than Plaza Centers NV. It trades about 0.1 of its potential returns per unit of risk. Plaza Centers NV is currently generating about 0.05 per unit of risk. If you would invest 24,990 in Infimer on August 31, 2024 and sell it today you would lose (24,840) from holding Infimer or give up 99.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Infimer vs. Plaza Centers NV
Performance |
| Timeline |
| Infimer |
| Plaza Centers NV |
Infimer and Plaza Centers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Infimer and Plaza Centers
The main advantage of trading using opposite Infimer and Plaza Centers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infimer position performs unexpectedly, Plaza Centers 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 Plaza Centers will offset losses from the drop in Plaza Centers' long position.| Infimer vs. Hiron Trade Investments Industrial | Infimer vs. One Software Technologies | Infimer vs. Analyst IMS Investment | Infimer vs. Aura Investments |
| Plaza Centers vs. Menif Financial Services | Plaza Centers vs. Harel Insurance Investments | Plaza Centers vs. Altshuler Shaham Financial | Plaza Centers vs. MEITAV INVESTMENTS HOUSE |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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