Correlation Between Infobird and Santeon

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

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

Diversification Opportunities for Infobird and Santeon

-0.17

Correlation Coefficient

Infobird  Santeon

Good diversification

The 3 months correlation between Infobird and Santeon is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Infobird Co and Santeon Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Santeon Group and Infobird 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 Infobird Co are associated (or correlated) with Santeon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Santeon Group has no effect on the direction of Infobird i.e., Infobird and Santeon go up and down completely randomly.

Pair Corralation between Infobird and Santeon

Given the investment horizon of 90 days Infobird Co is expected to generate 1.16 times more return on investment than Santeon. However, Infobird is 1.16 times more volatile than Santeon Group. It trades about 0.11 of its potential returns per unit of risk. Santeon Group is currently generating about -0.07 per unit of risk. If you would invest  194.00  in Infobird Co on October 1, 2024 and sell it today you would earn a total of  64.00  from holding Infobird Co or generate 32.99% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	97.62%
Values	Daily Returns

Infobird Co  vs.  Santeon Group

Infobird

Risk-Adjusted Performance

6 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Infobird Co are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile fundamental drivers, Infobird exhibited solid returns over the last few months and may actually be approaching a breakup point.

Santeon Group

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Santeon Group are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively abnormal basic indicators, Santeon unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Infobird and Santeon

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

The idea behind Infobird Co and Santeon Group 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.