Correlation Between Inflection Point and Cellebrite
Can any of the company-specific risk be diversified away by investing in both Inflection Point and Cellebrite 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 Inflection Point and Cellebrite into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inflection Point Acquisition and Cellebrite DI Equity, you can compare the effects of market volatilities on Inflection Point and Cellebrite 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 Inflection Point with a short position of Cellebrite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inflection Point and Cellebrite.
Diversification Opportunities for Inflection Point and Cellebrite
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Inflection and Cellebrite is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Inflection Point Acquisition and Cellebrite DI Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cellebrite DI Equity and Inflection Point 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 Inflection Point Acquisition are associated (or correlated) with Cellebrite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cellebrite DI Equity has no effect on the direction of Inflection Point i.e., Inflection Point and Cellebrite go up and down completely randomly.
Pair Corralation between Inflection Point and Cellebrite
Assuming the 90 days horizon Inflection Point Acquisition is expected to generate 0.05 times more return on investment than Cellebrite. However, Inflection Point Acquisition is 22.16 times less risky than Cellebrite. It trades about 0.2 of its potential returns per unit of risk. Cellebrite DI Equity is currently generating about -0.2 per unit of risk. If you would invest 1,075 in Inflection Point Acquisition on September 3, 2024 and sell it today you would earn a total of 25.00 from holding Inflection Point Acquisition or generate 2.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 17.19% |
| Values | Daily Returns |
Inflection Point Acquisition vs. Cellebrite DI Equity
Performance |
| Timeline |
| Inflection Point Acq |
| Cellebrite DI Equity |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Inflection Point and Cellebrite Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inflection Point and Cellebrite
The main advantage of trading using opposite Inflection Point and Cellebrite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inflection Point position performs unexpectedly, Cellebrite 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 Cellebrite will offset losses from the drop in Cellebrite's long position.| Inflection Point vs. Arrow Electronics | Inflection Point vs. BioNTech SE | Inflection Point vs. BJs Restaurants | Inflection Point vs. Yum Brands |
| Cellebrite vs. Chiba Bank Ltd | Cellebrite vs. Inflection Point Acquisition | Cellebrite vs. LithiumBank Resources Corp | Cellebrite vs. Artisan Partners Asset |
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.
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