Correlation Between Infomedia Press and SANOFI S

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

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

Diversification Opportunities for Infomedia Press and SANOFI S

0.38

Correlation Coefficient

Infomedia Press  SANOFI S

Weak diversification

The 3 months correlation between Infomedia and SANOFI is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Infomedia Press Limited and SANOFI S HEALTHC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SANOFI S HEALTHC and Infomedia Press 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 Infomedia Press Limited are associated (or correlated) with SANOFI S. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SANOFI S HEALTHC has no effect on the direction of Infomedia Press i.e., Infomedia Press and SANOFI S go up and down completely randomly.

Pair Corralation between Infomedia Press and SANOFI S

Assuming the 90 days trading horizon Infomedia Press Limited is expected to generate 2.11 times more return on investment than SANOFI S. However, Infomedia Press is 2.11 times more volatile than SANOFI S HEALTHC. It trades about 0.05 of its potential returns per unit of risk. SANOFI S HEALTHC is currently generating about 0.0 per unit of risk. If you would invest  455.00  in Infomedia Press Limited on October 11, 2024 and sell it today you would earn a total of  285.00  from holding Infomedia Press Limited or generate 62.64% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	16.46%
Values	Daily Returns

Infomedia Press Limited  vs.  SANOFI S HEALTHC

Infomedia Press

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Infomedia Press Limited has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile performance, the Stock's fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

SANOFI S HEALTHC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SANOFI S HEALTHC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, SANOFI S is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Infomedia Press and SANOFI S

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

The idea behind Infomedia Press Limited and SANOFI S HEALTHC 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.