Correlation Between Infraset Public and Jay Mart

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

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

Diversification Opportunities for Infraset Public and Jay Mart

-0.23

Correlation Coefficient

Infraset Public  Jay Mart

Very good diversification

The 3 months correlation between Infraset and Jay is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Infraset Public and Jay Mart Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jay Mart 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 Jay Mart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jay Mart Public has no effect on the direction of Infraset Public i.e., Infraset Public and Jay Mart go up and down completely randomly.

Pair Corralation between Infraset Public and Jay Mart

Assuming the 90 days trading horizon Infraset Public is expected to generate 19.68 times more return on investment than Jay Mart. However, Infraset Public is 19.68 times more volatile than Jay Mart Public. It trades about 0.08 of its potential returns per unit of risk. Jay Mart Public is currently generating about 0.0 per unit of risk. If you would invest  228.00  in Infraset Public on October 13, 2024 and sell it today you would earn a total of  54.00  from holding Infraset Public or generate 23.68% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Infraset Public  vs.  Jay Mart Public

Infraset Public

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Infraset Public are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak fundamental drivers, Infraset Public may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Jay Mart Public

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Jay Mart Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's fundamental drivers remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Infraset Public and Jay Mart

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

The idea behind Infraset Public and Jay Mart 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.