Correlation Between Soulbrain Holdings and INFINITT Healthcare
Can any of the company-specific risk be diversified away by investing in both Soulbrain Holdings and INFINITT Healthcare 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 Soulbrain Holdings and INFINITT Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Soulbrain Holdings Co and INFINITT Healthcare Co, you can compare the effects of market volatilities on Soulbrain Holdings and INFINITT Healthcare 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 Soulbrain Holdings with a short position of INFINITT Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Soulbrain Holdings and INFINITT Healthcare.
Diversification Opportunities for Soulbrain Holdings and INFINITT Healthcare
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Soulbrain and INFINITT is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Soulbrain Holdings Co and INFINITT Healthcare Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INFINITT Healthcare and Soulbrain Holdings 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 Soulbrain Holdings Co are associated (or correlated) with INFINITT Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INFINITT Healthcare has no effect on the direction of Soulbrain Holdings i.e., Soulbrain Holdings and INFINITT Healthcare go up and down completely randomly.
Pair Corralation between Soulbrain Holdings and INFINITT Healthcare
Assuming the 90 days trading horizon Soulbrain Holdings Co is expected to generate 1.62 times more return on investment than INFINITT Healthcare. However, Soulbrain Holdings is 1.62 times more volatile than INFINITT Healthcare Co. It trades about 0.04 of its potential returns per unit of risk. INFINITT Healthcare Co is currently generating about -0.11 per unit of risk. If you would invest 4,010,000 in Soulbrain Holdings Co on September 24, 2024 and sell it today you would earn a total of 90,000 from holding Soulbrain Holdings Co or generate 2.24% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 95.45% |
Values | Daily Returns |
Soulbrain Holdings Co vs. INFINITT Healthcare Co
Performance |
Timeline |
Soulbrain Holdings |
INFINITT Healthcare |
Soulbrain Holdings and INFINITT Healthcare Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Soulbrain Holdings and INFINITT Healthcare
The main advantage of trading using opposite Soulbrain Holdings and INFINITT Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Soulbrain Holdings position performs unexpectedly, INFINITT Healthcare 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 INFINITT Healthcare will offset losses from the drop in INFINITT Healthcare's long position.Soulbrain Holdings vs. LG Chemicals | Soulbrain Holdings vs. POSCO Holdings | Soulbrain Holdings vs. Hanwha Solutions | Soulbrain Holdings vs. Lotte Chemical Corp |
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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