Correlation Between Applied Materials, and Infracommerce CXaaS

Can any of the company-specific risk be diversified away by investing in both Applied Materials, and Infracommerce CXaaS 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 Applied Materials, and Infracommerce CXaaS into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Applied Materials, and Infracommerce CXaaS SA, you can compare the effects of market volatilities on Applied Materials, and Infracommerce CXaaS 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 Applied Materials, with a short position of Infracommerce CXaaS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Applied Materials, and Infracommerce CXaaS.

Diversification Opportunities for Applied Materials, and Infracommerce CXaaS

-0.82

Correlation Coefficient

Applied Materials,  Infracommerce CXaaS

Pay attention - limited upside

The 3 months correlation between Applied and Infracommerce is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Applied Materials, and Infracommerce CXaaS SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Infracommerce CXaaS and Applied Materials, 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 Applied Materials, are associated (or correlated) with Infracommerce CXaaS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Infracommerce CXaaS has no effect on the direction of Applied Materials, i.e., Applied Materials, and Infracommerce CXaaS go up and down completely randomly.

Pair Corralation between Applied Materials, and Infracommerce CXaaS

Assuming the 90 days trading horizon Applied Materials, is expected to generate 0.26 times more return on investment than Infracommerce CXaaS. However, Applied Materials, is 3.87 times less risky than Infracommerce CXaaS. It trades about 0.14 of its potential returns per unit of risk. Infracommerce CXaaS SA is currently generating about -0.09 per unit of risk. If you would invest  8,463  in Applied Materials, on April 24, 2025 and sell it today you would earn a total of  1,889  from holding Applied Materials, or generate 22.32% return on investment over 90 days.

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

Applied Materials,  vs.  Infracommerce CXaaS SA

Applied Materials,

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Applied Materials, are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak primary indicators, Applied Materials, sustained solid returns over the last few months and may actually be approaching a breakup point.

Infracommerce CXaaS

Risk-Adjusted Performance

Very Weak

Over the last 90 days Infracommerce CXaaS SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in August 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Applied Materials, and Infracommerce CXaaS

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

The idea behind Applied Materials, and Infracommerce CXaaS SA 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.