Correlation Between Infraset Public and Micro Leasing

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

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

Diversification Opportunities for Infraset Public and Micro Leasing

0.71

Correlation Coefficient

Infraset Public  Micro Leasing

Poor diversification

The 3 months correlation between Infraset and Micro is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Infraset Public and Micro Leasing Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Micro Leasing 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 Micro Leasing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Micro Leasing Public has no effect on the direction of Infraset Public i.e., Infraset Public and Micro Leasing go up and down completely randomly.

Pair Corralation between Infraset Public and Micro Leasing

Assuming the 90 days trading horizon Infraset Public is expected to under-perform the Micro Leasing. In addition to that, Infraset Public is 1.11 times more volatile than Micro Leasing Public. It trades about -0.19 of its total potential returns per unit of risk. Micro Leasing Public is currently generating about -0.09 per unit of volatility. If you would invest  98.00  in Micro Leasing Public on December 29, 2024 and sell it today you would lose (15.00) from holding Micro Leasing Public or give up 15.31% of portfolio value over 90 days.

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

Infraset Public  vs.  Micro Leasing Public

Infraset Public

Risk-Adjusted Performance

Very Weak

Over the last 90 days Infraset 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 April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Micro Leasing Public

Risk-Adjusted Performance

Very Weak

Over the last 90 days Micro Leasing 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 fundamental drivers remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Infraset Public and Micro Leasing

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

The idea behind Infraset Public and Micro Leasing 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.