Correlation Between Infineon Technologies and POET Technologies
Can any of the company-specific risk be diversified away by investing in both Infineon Technologies and POET Technologies 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 Infineon Technologies and POET Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Infineon Technologies AG and POET Technologies, you can compare the effects of market volatilities on Infineon Technologies and POET Technologies 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 Infineon Technologies with a short position of POET Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infineon Technologies and POET Technologies.
Diversification Opportunities for Infineon Technologies and POET Technologies
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Infineon and POET is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Infineon Technologies AG and POET Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on POET Technologies and Infineon Technologies 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 Infineon Technologies AG are associated (or correlated) with POET Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of POET Technologies has no effect on the direction of Infineon Technologies i.e., Infineon Technologies and POET Technologies go up and down completely randomly.
Pair Corralation between Infineon Technologies and POET Technologies
If you would invest 3,065 in Infineon Technologies AG on January 25, 2024 and sell it today you would earn a total of 627.00 from holding Infineon Technologies AG or generate 20.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Infineon Technologies AG vs. POET Technologies
Performance |
| Timeline |
| Infineon Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| POET Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Infineon Technologies and POET Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Infineon Technologies and POET Technologies
The main advantage of trading using opposite Infineon Technologies and POET Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infineon Technologies position performs unexpectedly, POET Technologies 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 POET Technologies will offset losses from the drop in POET Technologies' long position.| Infineon Technologies vs. Renesas Electronics | Infineon Technologies vs. Power Integrations | Infineon Technologies vs. Rohm Co Ltd | Infineon Technologies vs. MACOM Technology Solutions |
| POET Technologies vs. Bridgford Foods | POET Technologies vs. Vita Coco | POET Technologies vs. Westrock Coffee | POET Technologies vs. The Coca Cola |
Check out your portfolio center.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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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