Correlation Between Raba Jarmuipari and Infineon Technologies
Can any of the company-specific risk be diversified away by investing in both Raba Jarmuipari 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 Raba Jarmuipari and Infineon Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Raba Jarmuipari Holding and Infineon Technologies AG, you can compare the effects of market volatilities on Raba Jarmuipari 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 Raba Jarmuipari with a short position of Infineon Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Raba Jarmuipari and Infineon Technologies.
Diversification Opportunities for Raba Jarmuipari and Infineon Technologies
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Raba and Infineon is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Raba Jarmuipari Holding and Infineon Technologies AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Infineon Technologies and Raba Jarmuipari 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 Raba Jarmuipari Holding 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 Raba Jarmuipari i.e., Raba Jarmuipari and Infineon Technologies go up and down completely randomly.
Pair Corralation between Raba Jarmuipari and Infineon Technologies
Assuming the 90 days trading horizon Raba Jarmuipari Holding is expected to under-perform the Infineon Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Raba Jarmuipari Holding is 1.95 times less risky than Infineon Technologies. The stock trades about -0.03 of its potential returns per unit of risk. The Infineon Technologies AG is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,141,030 in Infineon Technologies AG on September 1, 2024 and sell it today you would earn a total of 127,570 from holding Infineon Technologies AG or generate 11.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 59.85% |
| Values | Daily Returns |
Raba Jarmuipari Holding vs. Infineon Technologies AG
Performance |
| Timeline |
| Raba Jarmuipari Holding |
| Infineon Technologies |
Raba Jarmuipari and Infineon Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Raba Jarmuipari and Infineon Technologies
The main advantage of trading using opposite Raba Jarmuipari and Infineon Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Raba Jarmuipari 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.| Raba Jarmuipari vs. NordTelekom Telecommunications Service | Raba Jarmuipari vs. CIG Pannonia Life | Raba Jarmuipari vs. Delta Technologies Nyrt | Raba Jarmuipari vs. Commerzbank AG |
| Infineon Technologies vs. OTP Bank Nyrt | Infineon Technologies vs. OPUS GLOBAL Nyrt | Infineon Technologies vs. Raba Jarmuipari Holding | Infineon Technologies vs. Delta Technologies Nyrt |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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