Correlation Between Infinity Capital and Oil Terminal

Can any of the company-specific risk be diversified away by investing in both Infinity Capital and Oil Terminal 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 Oil Terminal 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 Oil Terminal C, you can compare the effects of market volatilities on Infinity Capital and Oil Terminal 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 Oil Terminal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infinity Capital and Oil Terminal.

Diversification Opportunities for Infinity Capital and Oil Terminal

0.33

Correlation Coefficient

Infinity Capital  Oil Terminal

Weak diversification

The 3 months correlation between Infinity and Oil is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Infinity Capital Investments and Oil Terminal C in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oil Terminal C 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 Oil Terminal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oil Terminal C has no effect on the direction of Infinity Capital i.e., Infinity Capital and Oil Terminal go up and down completely randomly.

Pair Corralation between Infinity Capital and Oil Terminal

If you would invest  243.00  in Infinity Capital Investments on October 24, 2024 and sell it today you would earn a total of  3.00  from holding Infinity Capital Investments or generate 1.23% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	93.33%
Values	Daily Returns

Infinity Capital Investments  vs.  Oil Terminal C

Infinity Capital Inv

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Infinity Capital Investments has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Infinity Capital is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Oil Terminal C

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Infinity Capital and Oil Terminal

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

The idea behind Infinity Capital Investments and Oil Terminal C 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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.