Correlation Between Infraset Public and II Group
Can any of the company-specific risk be diversified away by investing in both Infraset Public and II Group 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 Infraset Public and II Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Infraset Public and II Group Public, you can compare the effects of market volatilities on Infraset Public and II Group 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 Infraset Public with a short position of II Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infraset Public and II Group.
Diversification Opportunities for Infraset Public and II Group
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Infraset and IIG is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Infraset Public and II Group Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on II Group Public and Infraset Public 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 Infraset Public are associated (or correlated) with II Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of II Group Public has no effect on the direction of Infraset Public i.e., Infraset Public and II Group go up and down completely randomly.
Pair Corralation between Infraset Public and II Group
Assuming the 90 days trading horizon Infraset Public is expected to generate 1.04 times more return on investment than II Group. However, Infraset Public is 1.04 times more volatile than II Group Public. It trades about 0.08 of its potential returns per unit of risk. II Group Public is currently generating about 0.08 per unit of risk. If you would invest 322.00 in Infraset Public on September 12, 2024 and sell it today you would earn a total of 16.00 from holding Infraset Public or generate 4.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Infraset Public vs. II Group Public
Performance |
| Timeline |
| Infraset Public |
| II Group Public |
Infraset Public and II Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Infraset Public and II Group
The main advantage of trading using opposite Infraset Public and II Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infraset Public position performs unexpectedly, II Group 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 II Group will offset losses from the drop in II Group's long position.| Infraset Public vs. Interlink Telecom Public | Infraset Public vs. Internet Thailand Public | Infraset Public vs. Humanica Public | Infraset Public vs. Hana Microelectronics Public |
| II Group vs. Delta Electronics Public | II Group vs. Delta Electronics Public | II Group vs. Airports of Thailand | II Group vs. Airports of Thailand |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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