Correlation Between Full Truck and Infobird
Can any of the company-specific risk be diversified away by investing in both Full Truck and Infobird 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 Full Truck and Infobird into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Full Truck Alliance and Infobird Co, you can compare the effects of market volatilities on Full Truck and Infobird 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 Full Truck with a short position of Infobird. Check out your portfolio center. Please also check ongoing floating volatility patterns of Full Truck and Infobird.
Diversification Opportunities for Full Truck and Infobird
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Full and Infobird is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Full Truck Alliance and Infobird Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Infobird and Full Truck 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 Full Truck Alliance are associated (or correlated) with Infobird. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Infobird has no effect on the direction of Full Truck i.e., Full Truck and Infobird go up and down completely randomly.
Pair Corralation between Full Truck and Infobird
Considering the 90-day investment horizon Full Truck Alliance is expected to generate 0.85 times more return on investment than Infobird. However, Full Truck Alliance is 1.18 times less risky than Infobird. It trades about 0.04 of its potential returns per unit of risk. Infobird Co is currently generating about -0.07 per unit of risk. If you would invest 903.00 in Full Truck Alliance on August 24, 2024 and sell it today you would earn a total of 21.00 from holding Full Truck Alliance or generate 2.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Full Truck Alliance vs. Infobird Co
Performance |
| Timeline |
| Full Truck Alliance |
| Infobird |
Full Truck and Infobird Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Full Truck and Infobird
The main advantage of trading using opposite Full Truck and Infobird positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Full Truck position performs unexpectedly, Infobird 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 Infobird will offset losses from the drop in Infobird's long position.| Full Truck vs. Alkami Technology | Full Truck vs. Envestnet | Full Truck vs. Paycor HCM | Full Truck vs. Procore Technologies |
| Infobird vs. HeartCore Enterprises | Infobird vs. Beamr Imaging Ltd | Infobird vs. Trust Stamp | Infobird vs. CXApp Inc |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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