Correlation Between Infinity Capital and BONAS IMPORT

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

By analyzing existing cross correlation between Infinity Capital Investments and BONAS IMPORT EXPORT, you can compare the effects of market volatilities on Infinity Capital and BONAS IMPORT 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 Infinity Capital with a short position of BONAS IMPORT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infinity Capital and BONAS IMPORT.

Diversification Opportunities for Infinity Capital and BONAS IMPORT

-0.14

Correlation Coefficient

Infinity Capital  BONAS IMPORT

Good diversification

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

Pair Corralation between Infinity Capital and BONAS IMPORT

Assuming the 90 days trading horizon Infinity Capital Investments is expected to under-perform the BONAS IMPORT. But the stock apears to be less risky and, when comparing its historical volatility, Infinity Capital Investments is 18.81 times less risky than BONAS IMPORT. The stock trades about -0.06 of its potential returns per unit of risk. The BONAS IMPORT EXPORT is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  90.00  in BONAS IMPORT EXPORT on October 15, 2024 and sell it today you would earn a total of  2.00  from holding BONAS IMPORT EXPORT or generate 2.22% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	76.92%
Values	Daily Returns

Infinity Capital Investments  vs.  BONAS IMPORT EXPORT

Infinity Capital Inv

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Infinity Capital Investments are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Infinity Capital is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

BONAS IMPORT EXPORT

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days BONAS IMPORT EXPORT has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, BONAS IMPORT is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Infinity Capital and BONAS IMPORT

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

The idea behind Infinity Capital Investments and BONAS IMPORT EXPORT 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.