Correlation Between ChampionX and Inflection Point
Can any of the company-specific risk be diversified away by investing in both ChampionX 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 ChampionX and Inflection Point into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ChampionX and Inflection Point Acquisition, you can compare the effects of market volatilities on ChampionX 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 ChampionX with a short position of Inflection Point. Check out your portfolio center. Please also check ongoing floating volatility patterns of ChampionX and Inflection Point.
Diversification Opportunities for ChampionX and Inflection Point
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ChampionX and Inflection is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding ChampionX 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 ChampionX 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 ChampionX 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 ChampionX i.e., ChampionX and Inflection Point go up and down completely randomly.
Pair Corralation between ChampionX and Inflection Point
Considering the 90-day investment horizon ChampionX is expected to generate 1.01 times less return on investment than Inflection Point. But when comparing it to its historical volatility, ChampionX is 1.15 times less risky than Inflection Point. It trades about 0.1 of its potential returns per unit of risk. Inflection Point Acquisition is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,420 in Inflection Point Acquisition on November 5, 2024 and sell it today you would earn a total of 61.00 from holding Inflection Point Acquisition or generate 4.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ChampionX vs. Inflection Point Acquisition
Performance |
| Timeline |
| ChampionX |
| Inflection Point Acq |
ChampionX and Inflection Point Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ChampionX and Inflection Point
The main advantage of trading using opposite ChampionX and Inflection Point positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ChampionX 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.| ChampionX vs. Expro Group Holdings | ChampionX vs. Ranger Energy Services | ChampionX vs. Cactus Inc | ChampionX vs. MRC Global |
| Inflection Point vs. CAVA Group, | Inflection Point vs. Cracker Barrel Old | Inflection Point vs. Emerson Radio | Inflection Point vs. Visa Class A |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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