Correlation Between Innovative International and Cactus Acquisition
Can any of the company-specific risk be diversified away by investing in both Innovative International and Cactus 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 Innovative International and Cactus Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Innovative International Acquisition and Cactus Acquisition Corp, you can compare the effects of market volatilities on Innovative International and Cactus 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 Innovative International with a short position of Cactus Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Innovative International and Cactus Acquisition.
Diversification Opportunities for Innovative International and Cactus Acquisition
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Innovative and Cactus is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Innovative International Acqui and Cactus Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cactus Acquisition Corp and Innovative International 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 Innovative International Acquisition are associated (or correlated) with Cactus Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cactus Acquisition Corp has no effect on the direction of Innovative International i.e., Innovative International and Cactus Acquisition go up and down completely randomly.
Pair Corralation between Innovative International and Cactus Acquisition
If you would invest 1,045 in Cactus Acquisition Corp on January 17, 2025 and sell it today you would earn a total of 67.00 from holding Cactus Acquisition Corp or generate 6.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Innovative International Acqui vs. Cactus Acquisition Corp
Performance |
| Timeline |
| Innovative International |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Cactus Acquisition Corp |
Innovative International and Cactus Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Innovative International and Cactus Acquisition
The main advantage of trading using opposite Innovative International and Cactus Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Innovative International position performs unexpectedly, Cactus 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 Cactus Acquisition will offset losses from the drop in Cactus Acquisition's long position.| Innovative International vs. Radcom | Innovative International vs. Lizhi Inc | Innovative International vs. Getty Images Holdings | Innovative International vs. Playa Hotels Resorts |
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
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |