Correlation Between ReposiTrak and InfuSystems Holdings
Can any of the company-specific risk be diversified away by investing in both ReposiTrak and InfuSystems Holdings 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 ReposiTrak and InfuSystems Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ReposiTrak and InfuSystems Holdings, you can compare the effects of market volatilities on ReposiTrak and InfuSystems Holdings 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 ReposiTrak with a short position of InfuSystems Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of ReposiTrak and InfuSystems Holdings.
Diversification Opportunities for ReposiTrak and InfuSystems Holdings
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between ReposiTrak and InfuSystems is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding ReposiTrak and InfuSystems Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on InfuSystems Holdings and ReposiTrak 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 ReposiTrak are associated (or correlated) with InfuSystems Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of InfuSystems Holdings has no effect on the direction of ReposiTrak i.e., ReposiTrak and InfuSystems Holdings go up and down completely randomly.
Pair Corralation between ReposiTrak and InfuSystems Holdings
Given the investment horizon of 90 days ReposiTrak is expected to generate 0.91 times more return on investment than InfuSystems Holdings. However, ReposiTrak is 1.1 times less risky than InfuSystems Holdings. It trades about -0.03 of its potential returns per unit of risk. InfuSystems Holdings is currently generating about -0.16 per unit of risk. If you would invest 2,274 in ReposiTrak on October 9, 2024 and sell it today you would lose (57.00) from holding ReposiTrak or give up 2.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.0% |
| Values | Daily Returns |
ReposiTrak vs. InfuSystems Holdings
Performance |
| Timeline |
| ReposiTrak |
| InfuSystems Holdings |
ReposiTrak and InfuSystems Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ReposiTrak and InfuSystems Holdings
The main advantage of trading using opposite ReposiTrak and InfuSystems Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ReposiTrak position performs unexpectedly, InfuSystems Holdings 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 InfuSystems Holdings will offset losses from the drop in InfuSystems Holdings' long position.| ReposiTrak vs. Zumiez Inc | ReposiTrak vs. PVH Corp | ReposiTrak vs. Gentex | ReposiTrak vs. National CineMedia |
| InfuSystems Holdings vs. Electromed | InfuSystems Holdings vs. Issuer Direct Corp | InfuSystems Holdings vs. IRIDEX | InfuSystems Holdings vs. Milestone Scientific |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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