Correlation Between Splunk and Informatica
Can any of the company-specific risk be diversified away by investing in both Splunk and Informatica 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 Splunk and Informatica into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Splunk Inc and Informatica, you can compare the effects of market volatilities on Splunk and Informatica 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 Splunk with a short position of Informatica. Check out your portfolio center. Please also check ongoing floating volatility patterns of Splunk and Informatica.
Diversification Opportunities for Splunk and Informatica
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Splunk and Informatica is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Splunk Inc and Informatica in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Informatica and Splunk 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 Splunk Inc are associated (or correlated) with Informatica. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Informatica has no effect on the direction of Splunk i.e., Splunk and Informatica go up and down completely randomly.
Pair Corralation between Splunk and Informatica
If you would invest 2,640 in Informatica on August 28, 2024 and sell it today you would lose (3.00) from holding Informatica or give up 0.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Splunk Inc vs. Informatica
Performance |
| Timeline |
| Splunk Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Informatica |
Splunk and Informatica Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Splunk and Informatica
The main advantage of trading using opposite Splunk and Informatica positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Splunk position performs unexpectedly, Informatica 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 Informatica will offset losses from the drop in Informatica's long position.| Splunk vs. Crowdstrike Holdings | Splunk vs. Adobe Systems Incorporated | Splunk vs. Palantir Technologies | Splunk vs. Zscaler |
| Informatica vs. Evertec | Informatica vs. Couchbase | Informatica vs. Flywire Corp | Informatica vs. i3 Verticals |
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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