Correlation Between Inflection Point and Globalfoundries
Can any of the company-specific risk be diversified away by investing in both Inflection Point and Globalfoundries 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 Globalfoundries 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 Globalfoundries, you can compare the effects of market volatilities on Inflection Point and Globalfoundries 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 Globalfoundries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inflection Point and Globalfoundries.
Diversification Opportunities for Inflection Point and Globalfoundries
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Inflection and Globalfoundries is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Inflection Point Acquisition and Globalfoundries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Globalfoundries 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 Globalfoundries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Globalfoundries has no effect on the direction of Inflection Point i.e., Inflection Point and Globalfoundries go up and down completely randomly.
Pair Corralation between Inflection Point and Globalfoundries
Assuming the 90 days horizon Inflection Point is expected to generate 16.26 times less return on investment than Globalfoundries. But when comparing it to its historical volatility, Inflection Point Acquisition is 64.41 times less risky than Globalfoundries. It trades about 0.22 of its potential returns per unit of risk. Globalfoundries is currently generating about 0.06 of returns per unit of risk over similar time horizon. 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 |
Inflection Point Acquisition vs. Globalfoundries
Performance |
| Timeline |
| Inflection Point Acq |
| Globalfoundries |
Inflection Point and Globalfoundries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inflection Point and Globalfoundries
The main advantage of trading using opposite Inflection Point and Globalfoundries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inflection Point position performs unexpectedly, Globalfoundries 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 Globalfoundries will offset losses from the drop in Globalfoundries' long position.| Inflection Point vs. ClimateRock Class A | Inflection Point vs. CF Acquisition VII | Inflection Point vs. DP Cap Acquisition |
| Globalfoundries vs. NXP Semiconductors NV | Globalfoundries vs. Analog Devices | Globalfoundries vs. ON Semiconductor | Globalfoundries vs. Lattice Semiconductor |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |