Correlation Between Quantum EMotion and Infineon Technologies
Can any of the company-specific risk be diversified away by investing in both Quantum EMotion 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 Quantum EMotion and Infineon Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Quantum eMotion and Infineon Technologies AG, you can compare the effects of market volatilities on Quantum EMotion 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 Quantum EMotion with a short position of Infineon Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Quantum EMotion and Infineon Technologies.
Diversification Opportunities for Quantum EMotion and Infineon Technologies
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Quantum and Infineon is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Quantum eMotion and Infineon Technologies AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Infineon Technologies and Quantum EMotion 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 Quantum eMotion 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 Quantum EMotion i.e., Quantum EMotion and Infineon Technologies go up and down completely randomly.
Pair Corralation between Quantum EMotion and Infineon Technologies
If you would invest 8.38 in Quantum eMotion on August 29, 2024 and sell it today you would earn a total of 0.36 from holding Quantum eMotion or generate 4.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Quantum eMotion vs. Infineon Technologies AG
Performance |
| Timeline |
| Quantum eMotion |
| Infineon Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Quantum EMotion and Infineon Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Quantum EMotion and Infineon Technologies
The main advantage of trading using opposite Quantum EMotion and Infineon Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Quantum EMotion 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.| Quantum EMotion vs. NVIDIA | Quantum EMotion vs. Intel | Quantum EMotion vs. Taiwan Semiconductor Manufacturing | Quantum EMotion vs. Marvell Technology Group |
| Infineon Technologies vs. Renesas Electronics | Infineon Technologies vs. Power Integrations | Infineon Technologies vs. Rohm Co Ltd | Infineon Technologies vs. MACOM Technology Solutions |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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