Correlation Between Riskified and Infobird

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

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

Diversification Opportunities for Riskified and Infobird

-0.13

Correlation Coefficient

Riskified  Infobird

Good diversification

The 3 months correlation between Riskified and Infobird is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Riskified and Infobird Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Infobird and Riskified 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 Riskified are associated (or correlated) with Infobird. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Infobird has no effect on the direction of Riskified i.e., Riskified and Infobird go up and down completely randomly.

Pair Corralation between Riskified and Infobird

Given the investment horizon of 90 days Riskified is expected to generate 0.35 times more return on investment than Infobird. However, Riskified is 2.84 times less risky than Infobird. It trades about 0.08 of its potential returns per unit of risk. Infobird Co is currently generating about -0.04 per unit of risk. If you would invest  451.00  in Riskified on August 11, 2024 and sell it today you would earn a total of  9.00  from holding Riskified or generate 2.0% return on investment over 90 days.

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

Riskified  vs.  Infobird Co

Riskified

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Riskified 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 forward-looking signals remain rather sound which may send shares a bit higher in December 2024. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Infobird

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Infobird Co are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak fundamental drivers, Infobird may actually be approaching a critical reversion point that can send shares even higher in December 2024.

Pair Trading with Riskified and Infobird

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

The idea behind Riskified and Infobird 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.

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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 Transaction History module to view history of all your transactions and understand their impact on performance.