Correlation Between Maytronics and Infimer
Can any of the company-specific risk be diversified away by investing in both Maytronics and Infimer 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 Maytronics and Infimer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maytronics and Infimer, you can compare the effects of market volatilities on Maytronics and Infimer 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 Maytronics with a short position of Infimer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maytronics and Infimer.
Diversification Opportunities for Maytronics and Infimer
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Maytronics and Infimer is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Maytronics and Infimer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Infimer and Maytronics 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 Maytronics are associated (or correlated) with Infimer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Infimer has no effect on the direction of Maytronics i.e., Maytronics and Infimer go up and down completely randomly.
Pair Corralation between Maytronics and Infimer
Assuming the 90 days trading horizon Maytronics is expected to under-perform the Infimer. But the stock apears to be less risky and, when comparing its historical volatility, Maytronics is 24.48 times less risky than Infimer. The stock trades about -0.08 of its potential returns per unit of risk. The Infimer is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 25,100 in Infimer on September 3, 2024 and sell it today you would lose (24,950) from holding Infimer or give up 99.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maytronics vs. Infimer
Performance |
| Timeline |
| Maytronics |
| Infimer |
Maytronics and Infimer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maytronics and Infimer
The main advantage of trading using opposite Maytronics and Infimer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maytronics position performs unexpectedly, Infimer 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 Infimer will offset losses from the drop in Infimer's long position.| Maytronics vs. Matrix | Maytronics vs. Elbit Systems | Maytronics vs. Enlight Renewable Energy | Maytronics vs. Hilan |
| Infimer vs. Elbit Systems | Infimer vs. Bezeq Israeli Telecommunication | Infimer vs. Bank Hapoalim | Infimer vs. Teva Pharmaceutical Industries |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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