Correlation Between INFINITT Healthcare and SDN

Can any of the company-specific risk be diversified away by investing in both INFINITT Healthcare and SDN 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 INFINITT Healthcare and SDN into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between INFINITT Healthcare Co and SDN Company, you can compare the effects of market volatilities on INFINITT Healthcare and SDN 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 INFINITT Healthcare with a short position of SDN. Check out your portfolio center. Please also check ongoing floating volatility patterns of INFINITT Healthcare and SDN.

Diversification Opportunities for INFINITT Healthcare and SDN

0.0

Correlation Coefficient

INFINITT Healthcare  SDN

Pay attention - limited upside

The 3 months correlation between INFINITT and SDN is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding INFINITT Healthcare Co and SDN Company in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SDN Company and INFINITT Healthcare 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 INFINITT Healthcare Co are associated (or correlated) with SDN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SDN Company has no effect on the direction of INFINITT Healthcare i.e., INFINITT Healthcare and SDN go up and down completely randomly.

Pair Corralation between INFINITT Healthcare and SDN

If you would invest (100.00) in SDN Company on October 20, 2024 and sell it today you would earn a total of  100.00  from holding SDN Company or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

INFINITT Healthcare Co  vs.  SDN Company

INFINITT Healthcare

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days INFINITT Healthcare Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, INFINITT Healthcare is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

SDN Company

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SDN Company has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, SDN is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with INFINITT Healthcare and SDN

The main advantage of trading using opposite INFINITT Healthcare and SDN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INFINITT Healthcare position performs unexpectedly, SDN 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 SDN will offset losses from the drop in SDN's long position.

The idea behind INFINITT Healthcare Co and SDN Company pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..