Correlation Between Infrared Cameras and Real Messenger

Can any of the company-specific risk be diversified away by investing in both Infrared Cameras and Real Messenger 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 Infrared Cameras and Real Messenger into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Infrared Cameras Holdings and Real Messenger, you can compare the effects of market volatilities on Infrared Cameras and Real Messenger 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 Infrared Cameras with a short position of Real Messenger. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infrared Cameras and Real Messenger.

Diversification Opportunities for Infrared Cameras and Real Messenger

0.03

Correlation Coefficient

Infrared Cameras  Real Messenger

Significant diversification

The 3 months correlation between Infrared and Real is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Infrared Cameras Holdings and Real Messenger in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Real Messenger and Infrared Cameras 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 Infrared Cameras Holdings are associated (or correlated) with Real Messenger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Real Messenger has no effect on the direction of Infrared Cameras i.e., Infrared Cameras and Real Messenger go up and down completely randomly.

Pair Corralation between Infrared Cameras and Real Messenger

Given the investment horizon of 90 days Infrared Cameras is expected to generate 1.18 times less return on investment than Real Messenger. In addition to that, Infrared Cameras is 1.18 times more volatile than Real Messenger. It trades about 0.07 of its total potential returns per unit of risk. Real Messenger is currently generating about 0.1 per unit of volatility. If you would invest  178.00  in Real Messenger on July 31, 2025 and sell it today you would earn a total of  74.00  from holding Real Messenger or generate 41.57% return on investment over 90 days.

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

Infrared Cameras Holdings  vs.  Real Messenger

Infrared Cameras Holdings

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Infrared Cameras Holdings are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite fairly unsteady basic indicators, Infrared Cameras demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Real Messenger

Risk-Adjusted Performance

Fair

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

Pair Trading with Infrared Cameras and Real Messenger

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

The idea behind Infrared Cameras Holdings and Real Messenger 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.