Correlation Between Aterian and Inflection Point
Can any of the company-specific risk be diversified away by investing in both Aterian and Inflection Point 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 Aterian and Inflection Point into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aterian and Inflection Point Acquisition, you can compare the effects of market volatilities on Aterian and Inflection Point 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 Aterian with a short position of Inflection Point. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aterian and Inflection Point.
Diversification Opportunities for Aterian and Inflection Point
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aterian and Inflection is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Aterian and Inflection Point Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inflection Point Acq and Aterian 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 Aterian are associated (or correlated) with Inflection Point. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inflection Point Acq has no effect on the direction of Aterian i.e., Aterian and Inflection Point go up and down completely randomly.
Pair Corralation between Aterian and Inflection Point
Given the investment horizon of 90 days Aterian is expected to generate 12.51 times more return on investment than Inflection Point. However, Aterian is 12.51 times more volatile than Inflection Point Acquisition. It trades about 0.04 of its potential returns per unit of risk. Inflection Point Acquisition is currently generating about 0.22 per unit of risk. If you would invest 269.00 in Aterian on September 1, 2024 and sell it today you would earn a total of 4.00 from holding Aterian or generate 1.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aterian vs. Inflection Point Acquisition
Performance |
| Timeline |
| Aterian |
| Inflection Point Acq |
Aterian and Inflection Point Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aterian and Inflection Point
The main advantage of trading using opposite Aterian and Inflection Point positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aterian position performs unexpectedly, Inflection Point 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 Inflection Point will offset losses from the drop in Inflection Point's long position.| Aterian vs. SharkNinja, | Aterian vs. Energy Focu | Aterian vs. Flexsteel Industries | Aterian vs. Ethan Allen Interiors |
| Inflection Point vs. Aterian | Inflection Point vs. Church Dwight | Inflection Point vs. Mannatech Incorporated | Inflection Point vs. Saia Inc |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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