Correlation Between Nex Point and Infraset Public
Can any of the company-specific risk be diversified away by investing in both Nex Point and Infraset Public 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 Nex Point and Infraset Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nex Point Public and Infraset Public, you can compare the effects of market volatilities on Nex Point and Infraset Public 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 Nex Point with a short position of Infraset Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nex Point and Infraset Public.
Diversification Opportunities for Nex Point and Infraset Public
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Nex and Infraset is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Nex Point Public and Infraset Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Infraset Public and Nex Point 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 Nex Point Public are associated (or correlated) with Infraset Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Infraset Public has no effect on the direction of Nex Point i.e., Nex Point and Infraset Public go up and down completely randomly.
Pair Corralation between Nex Point and Infraset Public
Assuming the 90 days trading horizon Nex Point Public is expected to under-perform the Infraset Public. In addition to that, Nex Point is 1.18 times more volatile than Infraset Public. It trades about -0.33 of its total potential returns per unit of risk. Infraset Public is currently generating about -0.02 per unit of volatility. If you would invest 330.00 in Infraset Public on August 31, 2024 and sell it today you would lose (12.00) from holding Infraset Public or give up 3.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nex Point Public vs. Infraset Public
Performance |
| Timeline |
| Nex Point Public |
| Infraset Public |
Nex Point and Infraset Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nex Point and Infraset Public
The main advantage of trading using opposite Nex Point and Infraset Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nex Point position performs unexpectedly, Infraset Public 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 Infraset Public will offset losses from the drop in Infraset Public's long position.| Nex Point vs. GULF ENERGY DEVELOPMENT NVDR | Nex Point vs. Kiatnakin Phatra Bank | Nex Point vs. Thai Oil Public | Nex Point vs. The Erawan Group |
| Infraset Public vs. Interlink Telecom Public | Infraset Public vs. Internet Thailand Public | Infraset Public vs. Humanica Public | Infraset Public vs. Hana Microelectronics Public |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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