Correlation Between Infinity Natural and WisdomTree International
Can any of the company-specific risk be diversified away by investing in both Infinity Natural and WisdomTree International 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 Infinity Natural and WisdomTree International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Infinity Natural Resources and WisdomTree International LargeCap, you can compare the effects of market volatilities on Infinity Natural and WisdomTree International 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 Natural with a short position of WisdomTree International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infinity Natural and WisdomTree International.
Diversification Opportunities for Infinity Natural and WisdomTree International
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Infinity and WisdomTree is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Infinity Natural Resources and WisdomTree International Large in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree International and Infinity Natural 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 Natural Resources are associated (or correlated) with WisdomTree International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree International has no effect on the direction of Infinity Natural i.e., Infinity Natural and WisdomTree International go up and down completely randomly.
Pair Corralation between Infinity Natural and WisdomTree International
Considering the 90-day investment horizon Infinity Natural Resources is expected to generate 4.01 times more return on investment than WisdomTree International. However, Infinity Natural is 4.01 times more volatile than WisdomTree International LargeCap. It trades about 0.12 of its potential returns per unit of risk. WisdomTree International LargeCap is currently generating about 0.38 per unit of risk. If you would invest 1,338 in Infinity Natural Resources on October 16, 2025 and sell it today you would earn a total of 65.00 from holding Infinity Natural Resources or generate 4.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Infinity Natural Resources vs. WisdomTree International Large
Performance |
| Timeline |
| Infinity Natural Res |
| WisdomTree International |
Infinity Natural and WisdomTree International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Infinity Natural and WisdomTree International
The main advantage of trading using opposite Infinity Natural and WisdomTree International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infinity Natural position performs unexpectedly, WisdomTree International 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 WisdomTree International will offset losses from the drop in WisdomTree International's long position.| Infinity Natural vs. Amplify Energy Corp | Infinity Natural vs. Ring Energy | Infinity Natural vs. Imperial Petroleum | Infinity Natural vs. Kolibri Global Energy |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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