Correlation Between Eugene Investment and Infinitt Healthcare

Can any of the company-specific risk be diversified away by investing in both Eugene Investment and Infinitt Healthcare 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 Eugene Investment and Infinitt Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Eugene Investment Securities and Infinitt Healthcare Co, you can compare the effects of market volatilities on Eugene Investment and Infinitt Healthcare 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 Eugene Investment with a short position of Infinitt Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eugene Investment and Infinitt Healthcare.

Diversification Opportunities for Eugene Investment and Infinitt Healthcare

0.88

Correlation Coefficient

Eugene Investment  Infinitt Healthcare

Very poor diversification

The 3 months correlation between Eugene and Infinitt is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Eugene Investment Securities and Infinitt Healthcare Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Infinitt Healthcare and Eugene Investment 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 Eugene Investment Securities are associated (or correlated) with Infinitt Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Infinitt Healthcare has no effect on the direction of Eugene Investment i.e., Eugene Investment and Infinitt Healthcare go up and down completely randomly.

Pair Corralation between Eugene Investment and Infinitt Healthcare

Assuming the 90 days trading horizon Eugene Investment Securities is expected to generate 1.38 times more return on investment than Infinitt Healthcare. However, Eugene Investment is 1.38 times more volatile than Infinitt Healthcare Co. It trades about 0.18 of its potential returns per unit of risk. Infinitt Healthcare Co is currently generating about 0.1 per unit of risk. If you would invest  262,500  in Eugene Investment Securities on April 25, 2025 and sell it today you would earn a total of  111,500  from holding Eugene Investment Securities or generate 42.48% return on investment over 90 days.

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

Eugene Investment Securities  vs.  Infinitt Healthcare Co

Eugene Investment

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Eugene Investment Securities are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Eugene Investment sustained solid returns over the last few months and may actually be approaching a breakup point.

Infinitt Healthcare

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Infinitt Healthcare Co are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Infinitt Healthcare sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Eugene Investment and Infinitt Healthcare

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

The idea behind Eugene Investment Securities and Infinitt Healthcare Co 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.

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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.