Correlation Between Infineon Technologies and Appeninn Nyrt

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

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

Diversification Opportunities for Infineon Technologies and Appeninn Nyrt

0.75

Correlation Coefficient

Infineon Technologies  Appeninn Nyrt

Poor diversification

The 3 months correlation between Infineon and Appeninn is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Infineon Technologies AG and Appeninn Nyrt in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Appeninn Nyrt and Infineon Technologies 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 Infineon Technologies AG are associated (or correlated) with Appeninn Nyrt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Appeninn Nyrt has no effect on the direction of Infineon Technologies i.e., Infineon Technologies and Appeninn Nyrt go up and down completely randomly.

Pair Corralation between Infineon Technologies and Appeninn Nyrt

Assuming the 90 days trading horizon Infineon Technologies is expected to generate 2.55 times less return on investment than Appeninn Nyrt. In addition to that, Infineon Technologies is 2.39 times more volatile than Appeninn Nyrt. It trades about 0.06 of its total potential returns per unit of risk. Appeninn Nyrt is currently generating about 0.37 per unit of volatility. If you would invest  66,600  in Appeninn Nyrt on December 25, 2024 and sell it today you would earn a total of  22,000  from holding Appeninn Nyrt or generate 33.03% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	76.27%
Values	Daily Returns

Infineon Technologies AG  vs.  Appeninn Nyrt

Infineon Technologies

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Infineon Technologies AG are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak technical and fundamental indicators, Infineon Technologies may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Appeninn Nyrt

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Appeninn Nyrt are ranked lower than 28 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, Appeninn Nyrt sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Infineon Technologies and Appeninn Nyrt

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

The idea behind Infineon Technologies AG and Appeninn Nyrt 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.