Correlation Between Ihuman and Inflection Point
Can any of the company-specific risk be diversified away by investing in both Ihuman 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 Ihuman and Inflection Point into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ihuman Inc and Inflection Point Acquisition, you can compare the effects of market volatilities on Ihuman 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 Ihuman with a short position of Inflection Point. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ihuman and Inflection Point.
Diversification Opportunities for Ihuman and Inflection Point
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Ihuman and Inflection is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Ihuman Inc 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 Ihuman 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 Ihuman Inc 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 Ihuman i.e., Ihuman and Inflection Point go up and down completely randomly.
Pair Corralation between Ihuman and Inflection Point
Allowing for the 90-day total investment horizon Ihuman is expected to generate 1.27 times less return on investment than Inflection Point. But when comparing it to its historical volatility, Ihuman Inc is 1.02 times less risky than Inflection Point. It trades about 0.11 of its potential returns per unit of risk. Inflection Point Acquisition is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,340 in Inflection Point Acquisition on November 9, 2024 and sell it today you would earn a total of 84.00 from holding Inflection Point Acquisition or generate 6.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ihuman Inc vs. Inflection Point Acquisition
Performance |
| Timeline |
| Ihuman Inc |
| Inflection Point Acq |
Ihuman and Inflection Point Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ihuman and Inflection Point
The main advantage of trading using opposite Ihuman and Inflection Point positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ihuman 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.| Ihuman vs. Boqii Holding Limited | Ihuman vs. Lixiang Education Holding | Ihuman vs. Huize Holding | Ihuman vs. Kuke Music Holding |
| Inflection Point vs. Paranovus Entertainment Technology | Inflection Point vs. LATAM Airlines Group | Inflection Point vs. Smithfield Foods, Common | Inflection Point vs. International Consolidated Airlines |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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