Correlation Between Jupiter Green and Infineon Technologies
Can any of the company-specific risk be diversified away by investing in both Jupiter Green and Infineon Technologies 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 Jupiter Green and Infineon Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jupiter Green Investment and Infineon Technologies AG, you can compare the effects of market volatilities on Jupiter Green and Infineon Technologies 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 Jupiter Green with a short position of Infineon Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jupiter Green and Infineon Technologies.
Diversification Opportunities for Jupiter Green and Infineon Technologies
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jupiter and Infineon is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Jupiter Green Investment and Infineon Technologies AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Infineon Technologies and Jupiter Green 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 Jupiter Green Investment are associated (or correlated) with Infineon Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Infineon Technologies has no effect on the direction of Jupiter Green i.e., Jupiter Green and Infineon Technologies go up and down completely randomly.
Pair Corralation between Jupiter Green and Infineon Technologies
Assuming the 90 days trading horizon Jupiter Green is expected to generate 1.04 times less return on investment than Infineon Technologies. But when comparing it to its historical volatility, Jupiter Green Investment is 4.64 times less risky than Infineon Technologies. It trades about 0.41 of its potential returns per unit of risk. Infineon Technologies AG is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 3,084 in Infineon Technologies AG on November 4, 2024 and sell it today you would earn a total of 122.00 from holding Infineon Technologies AG or generate 3.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jupiter Green Investment vs. Infineon Technologies AG
Performance |
| Timeline |
| Jupiter Green Investment |
| Infineon Technologies |
Jupiter Green and Infineon Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jupiter Green and Infineon Technologies
The main advantage of trading using opposite Jupiter Green and Infineon Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jupiter Green position performs unexpectedly, Infineon Technologies 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 Infineon Technologies will offset losses from the drop in Infineon Technologies' long position.| Jupiter Green vs. Finnair Oyj | Jupiter Green vs. Synthomer plc | Jupiter Green vs. Take Two Interactive Software | Jupiter Green vs. Delta Air Lines |
| Infineon Technologies vs. Samsung Electronics Co | Infineon Technologies vs. Samsung Electronics Co | Infineon Technologies vs. Toyota Motor Corp | Infineon Technologies vs. Reliance Industries Ltd |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |