Correlation Between Norofert and Infinity Capital
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By analyzing existing cross correlation between Norofert SA and Infinity Capital Investments, you can compare the effects of market volatilities on Norofert and Infinity Capital 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 Norofert with a short position of Infinity Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Norofert and Infinity Capital.
Diversification Opportunities for Norofert and Infinity Capital
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Norofert and Infinity is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Norofert SA and Infinity Capital Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Infinity Capital Inv and Norofert 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 Norofert SA are associated (or correlated) with Infinity Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Infinity Capital Inv has no effect on the direction of Norofert i.e., Norofert and Infinity Capital go up and down completely randomly.
Pair Corralation between Norofert and Infinity Capital
Assuming the 90 days trading horizon Norofert SA is expected to generate 1.34 times more return on investment than Infinity Capital. However, Norofert is 1.34 times more volatile than Infinity Capital Investments. It trades about 0.07 of its potential returns per unit of risk. Infinity Capital Investments is currently generating about -0.09 per unit of risk. If you would invest 357.00 in Norofert SA on August 27, 2024 and sell it today you would earn a total of 8.00 from holding Norofert SA or generate 2.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Norofert SA vs. Infinity Capital Investments
Performance |
| Timeline |
| Norofert SA |
| Infinity Capital Inv |
Norofert and Infinity Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Norofert and Infinity Capital
The main advantage of trading using opposite Norofert and Infinity Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Norofert position performs unexpectedly, Infinity Capital 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 Infinity Capital will offset losses from the drop in Infinity Capital's long position.| Norofert vs. Bermas SA | Norofert vs. Remarul 16 Februarie | Norofert vs. Biofarm Bucure | Norofert vs. Rompetrol Rafi |
| Infinity Capital vs. Bermas SA | Infinity Capital vs. Remarul 16 Februarie | Infinity Capital vs. Norofert SA | Infinity Capital vs. Biofarm Bucure |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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