Correlation Between Frontier Investment and IX Acquisition
Can any of the company-specific risk be diversified away by investing in both Frontier Investment 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 Frontier Investment and IX Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Frontier Investment Corp and IX Acquisition Corp, you can compare the effects of market volatilities on Frontier Investment 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 Frontier Investment with a short position of IX Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Frontier Investment and IX Acquisition.
Diversification Opportunities for Frontier Investment and IX Acquisition
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Frontier and IXAQ is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Frontier Investment Corp 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 Frontier Investment 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 Frontier Investment Corp 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 Frontier Investment i.e., Frontier Investment and IX Acquisition go up and down completely randomly.
Pair Corralation between Frontier Investment and IX Acquisition
If you would invest 1,132 in IX Acquisition Corp on September 5, 2024 and sell it today you would earn a total of 31.00 from holding IX Acquisition Corp or generate 2.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 0.81% |
| Values | Daily Returns |
Frontier Investment Corp vs. IX Acquisition Corp
Performance |
| Timeline |
| Frontier Investment Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| IX Acquisition Corp |
Frontier Investment and IX Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Frontier Investment and IX Acquisition
The main advantage of trading using opposite Frontier Investment and IX Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Frontier Investment 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.| Frontier Investment vs. Mars Acquisition Corp | Frontier Investment vs. AlphaTime Acquisition Corp | Frontier Investment vs. BurTech Acquisition Corp | Frontier Investment vs. Manaris Corp |
| 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |