Correlation Between Wallbox NV and Infinera
Can any of the company-specific risk be diversified away by investing in both Wallbox NV and Infinera 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 Wallbox NV and Infinera into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wallbox NV and Infinera, you can compare the effects of market volatilities on Wallbox NV and Infinera 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 Wallbox NV with a short position of Infinera. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wallbox NV and Infinera.
Diversification Opportunities for Wallbox NV and Infinera
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Wallbox and Infinera is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Wallbox NV and Infinera in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Infinera and Wallbox NV 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 Wallbox NV are associated (or correlated) with Infinera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Infinera has no effect on the direction of Wallbox NV i.e., Wallbox NV and Infinera go up and down completely randomly.
Pair Corralation between Wallbox NV and Infinera
Considering the 90-day investment horizon Wallbox NV is expected to under-perform the Infinera. In addition to that, Wallbox NV is 1.49 times more volatile than Infinera. It trades about -0.06 of its total potential returns per unit of risk. Infinera is currently generating about 0.04 per unit of volatility. If you would invest 513.00 in Infinera on August 31, 2024 and sell it today you would earn a total of 148.00 from holding Infinera or generate 28.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wallbox NV vs. Infinera
Performance |
| Timeline |
| Wallbox NV |
| Infinera |
Wallbox NV and Infinera Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wallbox NV and Infinera
The main advantage of trading using opposite Wallbox NV and Infinera positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wallbox NV position performs unexpectedly, Infinera 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 Infinera will offset losses from the drop in Infinera's long position.| Wallbox NV vs. Kopin | Wallbox NV vs. Meta Materials | Wallbox NV vs. Corning Incorporated | Wallbox NV vs. KULR Technology Group |
| Infinera vs. Juniper Networks | Infinera vs. Lumentum Holdings | Infinera vs. Extreme Networks | Infinera vs. Clearfield |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |