Correlation Between Infobird and Freight Technologies

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

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

Diversification Opportunities for Infobird and Freight Technologies

0.7

Correlation Coefficient

Infobird  Freight Technologies

Poor diversification

The 3 months correlation between Infobird and Freight is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Infobird Co and Freight Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Freight Technologies and Infobird 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 Infobird Co are associated (or correlated) with Freight Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Freight Technologies has no effect on the direction of Infobird i.e., Infobird and Freight Technologies go up and down completely randomly.

Pair Corralation between Infobird and Freight Technologies

Given the investment horizon of 90 days Infobird Co is expected to under-perform the Freight Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Infobird Co is 1.9 times less risky than Freight Technologies. The stock trades about -0.15 of its potential returns per unit of risk. The Freight Technologies is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest  193.00  in Freight Technologies on December 29, 2024 and sell it today you would lose (82.00) from holding Freight Technologies or give up 42.49% of portfolio value over 90 days.

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

Infobird Co  vs.  Freight Technologies

Infobird

Risk-Adjusted Performance

Very Weak

Over the last 90 days Infobird Co has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's fundamental drivers remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Freight Technologies

Risk-Adjusted Performance

Very Weak

Over the last 90 days Freight Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's technical and fundamental indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Infobird and Freight Technologies

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

The idea behind Infobird Co and Freight Technologies 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..