Correlation Between Infraset Public and G Capital

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

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

Diversification Opportunities for Infraset Public and G Capital

-0.68

Correlation Coefficient

Infraset Public  G Capital

Excellent diversification

The 3 months correlation between Infraset and GCAP is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Infraset Public and G Capital Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on G Capital Public and Infraset Public 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 Infraset Public are associated (or correlated) with G Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of G Capital Public has no effect on the direction of Infraset Public i.e., Infraset Public and G Capital go up and down completely randomly.

Pair Corralation between Infraset Public and G Capital

Assuming the 90 days trading horizon Infraset Public is expected to generate 1.0 times more return on investment than G Capital. However, Infraset Public is 1.0 times less risky than G Capital. It trades about 0.04 of its potential returns per unit of risk. G Capital Public is currently generating about 0.04 per unit of risk. If you would invest  293.00  in Infraset Public on September 29, 2024 and sell it today you would earn a total of  23.00  from holding Infraset Public or generate 7.85% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	99.79%
Values	Daily Returns

Infraset Public  vs.  G Capital Public

Infraset Public

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Infraset Public are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat conflicting fundamental drivers, Infraset Public sustained solid returns over the last few months and may actually be approaching a breakup point.

G Capital Public

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days G Capital Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's forward-looking signals remain quite persistent which may send shares a bit higher in January 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Infraset Public and G Capital

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

The idea behind Infraset Public and G Capital Public 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..