Correlation Between Infineon Technologies and Toyota
Can any of the company-specific risk be diversified away by investing in both Infineon Technologies and Toyota 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 Infineon Technologies and Toyota into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Infineon Technologies AG and Toyota Motor Corp, you can compare the effects of market volatilities on Infineon Technologies and Toyota 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 Infineon Technologies with a short position of Toyota. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infineon Technologies and Toyota.
Diversification Opportunities for Infineon Technologies and Toyota
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Infineon and Toyota is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Infineon Technologies AG and Toyota Motor Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Toyota Motor Corp and Infineon Technologies 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 Infineon Technologies AG are associated (or correlated) with Toyota. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Toyota Motor Corp has no effect on the direction of Infineon Technologies i.e., Infineon Technologies and Toyota go up and down completely randomly.
Pair Corralation between Infineon Technologies and Toyota
Assuming the 90 days trading horizon Infineon Technologies AG is expected to generate 1.27 times more return on investment than Toyota. However, Infineon Technologies is 1.27 times more volatile than Toyota Motor Corp. It trades about 0.1 of its potential returns per unit of risk. Toyota Motor Corp is currently generating about 0.09 per unit of risk. If you would invest 3,201 in Infineon Technologies AG on September 11, 2025 and sell it today you would earn a total of 451.00 from holding Infineon Technologies AG or generate 14.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Infineon Technologies AG vs. Toyota Motor Corp
Performance |
| Timeline |
| Infineon Technologies |
| Toyota Motor Corp |
Infineon Technologies and Toyota Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Infineon Technologies and Toyota
The main advantage of trading using opposite Infineon Technologies and Toyota positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infineon Technologies position performs unexpectedly, Toyota 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 Toyota will offset losses from the drop in Toyota's long position.| Infineon Technologies vs. Ecclesiastical Insurance Office | Infineon Technologies vs. Aeorema Communications Plc | Infineon Technologies vs. Universal Display Corp | Infineon Technologies vs. Playtech Plc |
| Toyota vs. Orient Telecoms | Toyota vs. Associated British Foods | Toyota vs. Grieg Seafood | Toyota vs. Infrastrutture Wireless Italiane |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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