Correlation Between Infraset Public and Saksiam Leasing

Can any of the company-specific risk be diversified away by investing in both Infraset Public and Saksiam 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 Saksiam 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 Saksiam Leasing Public, you can compare the effects of market volatilities on Infraset Public and Saksiam 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 Saksiam Leasing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infraset Public and Saksiam Leasing.

Diversification Opportunities for Infraset Public and Saksiam Leasing

-0.06

Correlation Coefficient

Infraset Public  Saksiam Leasing

Good diversification

The 3 months correlation between Infraset and Saksiam is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Infraset Public and Saksiam Leasing Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saksiam 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 Saksiam Leasing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saksiam Leasing Public has no effect on the direction of Infraset Public i.e., Infraset Public and Saksiam Leasing go up and down completely randomly.

Pair Corralation between Infraset Public and Saksiam Leasing

Assuming the 90 days trading horizon Infraset Public is expected to generate 17.33 times more return on investment than Saksiam Leasing. However, Infraset Public is 17.33 times more volatile than Saksiam Leasing Public. It trades about 0.04 of its potential returns per unit of risk. Saksiam Leasing Public is currently generating about 0.0 per unit of risk. If you would invest  299.00  in Infraset Public on September 24, 2024 and sell it today you would earn a total of  15.00  from holding Infraset Public or generate 5.02% 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.  Saksiam Leasing Public

Infraset Public

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Infraset Public are ranked lower than 9 (%) 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.

Saksiam Leasing Public

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Saksiam Leasing Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's forward-looking signals remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Pair Trading with Infraset Public and Saksiam Leasing

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

The idea behind Infraset Public and Saksiam 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.