Correlation Between Associated Capital and IX Acquisition
Can any of the company-specific risk be diversified away by investing in both Associated Capital and IX Acquisition 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 Associated Capital and IX Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Associated Capital Group and IX Acquisition Corp, you can compare the effects of market volatilities on Associated Capital and IX Acquisition 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 Associated Capital with a short position of IX Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Associated Capital and IX Acquisition.
Diversification Opportunities for Associated Capital and IX Acquisition
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Associated and IXAQ is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Associated Capital Group and IX Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IX Acquisition Corp and Associated Capital 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 Associated Capital Group are associated (or correlated) with IX Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IX Acquisition Corp has no effect on the direction of Associated Capital i.e., Associated Capital and IX Acquisition go up and down completely randomly.
Pair Corralation between Associated Capital and IX Acquisition
Allowing for the 90-day total investment horizon Associated Capital is expected to generate 1.56 times less return on investment than IX Acquisition. In addition to that, Associated Capital is 4.35 times more volatile than IX Acquisition Corp. It trades about 0.01 of its total potential returns per unit of risk. IX Acquisition Corp is currently generating about 0.08 per unit of volatility. If you would invest 1,038 in IX Acquisition Corp on August 26, 2024 and sell it today you would earn a total of 112.00 from holding IX Acquisition Corp or generate 10.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Associated Capital Group vs. IX Acquisition Corp
Performance |
| Timeline |
| Associated Capital |
| IX Acquisition Corp |
Associated Capital and IX Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Associated Capital and IX Acquisition
The main advantage of trading using opposite Associated Capital and IX Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Associated Capital position performs unexpectedly, IX Acquisition 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 IX Acquisition will offset losses from the drop in IX Acquisition's long position.| Associated Capital vs. Abrdn Emerging Markets | Associated Capital vs. DWS Municipal Income | Associated Capital vs. Blackrock Muni Intermediate | Associated Capital vs. Blackrock Muniyield |
| IX Acquisition vs. Thunder Bridge Capital | IX Acquisition vs. Welsbach Technology Metals | IX Acquisition vs. BurTech Acquisition Corp |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |