Correlation Between InfuSystems Holdings and 50249AAF0

Can any of the company-specific risk be diversified away by investing in both InfuSystems Holdings and 50249AAF0 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 InfuSystems Holdings and 50249AAF0 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between InfuSystems Holdings and LYB 125 01 OCT 25, you can compare the effects of market volatilities on InfuSystems Holdings and 50249AAF0 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 InfuSystems Holdings with a short position of 50249AAF0. Check out your portfolio center. Please also check ongoing floating volatility patterns of InfuSystems Holdings and 50249AAF0.

Diversification Opportunities for InfuSystems Holdings and 50249AAF0

0.26

Correlation Coefficient

InfuSystems Holdings  50249AAF0

Modest diversification

The 3 months correlation between InfuSystems and 50249AAF0 is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding InfuSystems Holdings and LYB 125 01 OCT 25 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LYB 125 01 and InfuSystems Holdings 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 InfuSystems Holdings are associated (or correlated) with 50249AAF0. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LYB 125 01 has no effect on the direction of InfuSystems Holdings i.e., InfuSystems Holdings and 50249AAF0 go up and down completely randomly.

Pair Corralation between InfuSystems Holdings and 50249AAF0

Given the investment horizon of 90 days InfuSystems Holdings is expected to under-perform the 50249AAF0. In addition to that, InfuSystems Holdings is 4.04 times more volatile than LYB 125 01 OCT 25. It trades about -0.13 of its total potential returns per unit of risk. LYB 125 01 OCT 25 is currently generating about -0.13 per unit of volatility. If you would invest  9,719  in LYB 125 01 OCT 25 on December 27, 2024 and sell it today you would lose (599.00) from holding LYB 125 01 OCT 25 or give up 6.16% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	95.0%
Values	Daily Returns

InfuSystems Holdings  vs.  LYB 125 01 OCT 25

InfuSystems Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days InfuSystems Holdings 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.

LYB 125 01

Risk-Adjusted Performance

Very Weak

Over the last 90 days LYB 125 01 OCT 25 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest abnormal performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for LYB 125 01 OCT 25 investors.

Pair Trading with InfuSystems Holdings and 50249AAF0

The main advantage of trading using opposite InfuSystems Holdings and 50249AAF0 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if InfuSystems Holdings position performs unexpectedly, 50249AAF0 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 50249AAF0 will offset losses from the drop in 50249AAF0's long position.

The idea behind InfuSystems Holdings and LYB 125 01 OCT 25 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 CEOs Directory module to screen CEOs from public companies around the world.