Correlation Between Amir Marketing and Infimer

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

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

Diversification Opportunities for Amir Marketing and Infimer

0.17

Correlation Coefficient

Amir Marketing  Infimer

Average diversification

The 3 months correlation between Amir and Infimer is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Amir Marketing and and Infimer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Infimer and Amir Marketing 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 Amir Marketing and are associated (or correlated) with Infimer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Infimer has no effect on the direction of Amir Marketing i.e., Amir Marketing and Infimer go up and down completely randomly.

Pair Corralation between Amir Marketing and Infimer

Assuming the 90 days trading horizon Amir Marketing is expected to generate 2361.7 times less return on investment than Infimer. But when comparing it to its historical volatility, Amir Marketing and is 160.66 times less risky than Infimer. It trades about 0.03 of its potential returns per unit of risk. Infimer is currently generating about 0.39 of returns per unit of risk over similar time horizon. If you would invest  9.80  in Infimer on October 10, 2024 and sell it today you would earn a total of  2,802,990  from holding Infimer or generate 2.860194082E7% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Amir Marketing and  vs.  Infimer

Amir Marketing

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Amir Marketing and are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Amir Marketing sustained solid returns over the last few months and may actually be approaching a breakup point.

Infimer

Risk-Adjusted Performance

20 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Infimer are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak technical and fundamental indicators, Infimer sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Amir Marketing and Infimer

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

The idea behind Amir Marketing and and Infimer 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.

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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.