Correlation Between AMOTIV and Infomedia

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

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

Diversification Opportunities for AMOTIV and Infomedia

-0.14

Correlation Coefficient

AMOTIV  Infomedia

Good diversification

The 3 months correlation between AMOTIV and Infomedia is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding AMOTIV LTD and Infomedia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Infomedia and AMOTIV 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 AMOTIV LTD are associated (or correlated) with Infomedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Infomedia has no effect on the direction of AMOTIV i.e., AMOTIV and Infomedia go up and down completely randomly.

Pair Corralation between AMOTIV and Infomedia

Assuming the 90 days trading horizon AMOTIV is expected to generate 3.99 times less return on investment than Infomedia. But when comparing it to its historical volatility, AMOTIV LTD is 2.38 times less risky than Infomedia. It trades about 0.15 of its potential returns per unit of risk. Infomedia is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest  137.00  in Infomedia on October 4, 2024 and sell it today you would earn a total of  17.00  from holding Infomedia or generate 12.41% return on investment over 90 days.

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

AMOTIV LTD  vs.  Infomedia

AMOTIV LTD

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in AMOTIV LTD are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, AMOTIV may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Infomedia

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Infomedia are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain primary indicators, Infomedia may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with AMOTIV and Infomedia

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

The idea behind AMOTIV LTD and Infomedia 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.