Correlation Between Inflection Point and Stagwell
Can any of the company-specific risk be diversified away by investing in both Inflection Point and Stagwell 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 Stagwell 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 Stagwell, you can compare the effects of market volatilities on Inflection Point and Stagwell 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 Stagwell. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inflection Point and Stagwell.
Diversification Opportunities for Inflection Point and Stagwell
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Inflection and Stagwell is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Inflection Point Acquisition and Stagwell in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stagwell 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 Stagwell. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stagwell has no effect on the direction of Inflection Point i.e., Inflection Point and Stagwell go up and down completely randomly.
Pair Corralation between Inflection Point and Stagwell
Assuming the 90 days horizon Inflection Point Acquisition is expected to generate 14.35 times more return on investment than Stagwell. However, Inflection Point is 14.35 times more volatile than Stagwell. It trades about 0.05 of its potential returns per unit of risk. Stagwell is currently generating about 0.02 per unit of risk. If you would invest 0.00 in Inflection Point Acquisition on November 28, 2024 and sell it today you would earn a total of 1,160 from holding Inflection Point Acquisition or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 93.23% |
| Values | Daily Returns |
Inflection Point Acquisition vs. Stagwell
Performance |
| Timeline |
| Inflection Point Acq |
| Stagwell |
Inflection Point and Stagwell Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inflection Point and Stagwell
The main advantage of trading using opposite Inflection Point and Stagwell positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inflection Point position performs unexpectedly, Stagwell 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 Stagwell will offset losses from the drop in Stagwell's long position.| Inflection Point vs. Trio Tech International | Inflection Point vs. Primoris Services | Inflection Point vs. FS KKR Capital | Inflection Point vs. Omni Health |
| Stagwell vs. Interpublic Group of | Stagwell vs. Cimpress NV | Stagwell vs. Criteo Sa | Stagwell vs. Omnicom Group |
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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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