Correlation Between Globalfoundries and Inflection Point
Can any of the company-specific risk be diversified away by investing in both Globalfoundries 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 Globalfoundries and Inflection Point into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Globalfoundries and Inflection Point Acquisition, you can compare the effects of market volatilities on Globalfoundries 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 Globalfoundries with a short position of Inflection Point. Check out your portfolio center. Please also check ongoing floating volatility patterns of Globalfoundries and Inflection Point.
Diversification Opportunities for Globalfoundries and Inflection Point
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Globalfoundries and Inflection is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Globalfoundries 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 Globalfoundries 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 Globalfoundries 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 Globalfoundries i.e., Globalfoundries and Inflection Point go up and down completely randomly.
Pair Corralation between Globalfoundries and Inflection Point
Considering the 90-day investment horizon Globalfoundries is expected to generate 64.41 times more return on investment than Inflection Point. However, Globalfoundries is 64.41 times more volatile than Inflection Point Acquisition. It trades about 0.06 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 4,025 in Globalfoundries on August 30, 2024 and sell it today you would earn a total of 260.00 from holding Globalfoundries or generate 6.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.73% |
| Values | Daily Returns |
Globalfoundries vs. Inflection Point Acquisition
Performance |
| Timeline |
| Globalfoundries |
| Inflection Point Acq |
Globalfoundries and Inflection Point Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Globalfoundries and Inflection Point
The main advantage of trading using opposite Globalfoundries and Inflection Point positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Globalfoundries 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.| Globalfoundries vs. NXP Semiconductors NV | Globalfoundries vs. Analog Devices | Globalfoundries vs. ON Semiconductor | Globalfoundries vs. Lattice Semiconductor |
| Inflection Point vs. ClimateRock Class A | Inflection Point vs. CF Acquisition VII | Inflection Point vs. DP Cap Acquisition |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |