Correlation Between Inflection Point and CATERPILLAR
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By analyzing existing cross correlation between Inflection Point Acquisition and CATERPILLAR FINANCIAL SERVICES, you can compare the effects of market volatilities on Inflection Point and CATERPILLAR 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 CATERPILLAR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inflection Point and CATERPILLAR.
Diversification Opportunities for Inflection Point and CATERPILLAR
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Inflection and CATERPILLAR is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Inflection Point Acquisition and CATERPILLAR FINANCIAL SERVICES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CATERPILLAR FINANCIAL 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 CATERPILLAR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CATERPILLAR FINANCIAL has no effect on the direction of Inflection Point i.e., Inflection Point and CATERPILLAR go up and down completely randomly.
Pair Corralation between Inflection Point and CATERPILLAR
Assuming the 90 days horizon Inflection Point Acquisition is expected to generate 0.81 times more return on investment than CATERPILLAR. However, Inflection Point Acquisition is 1.23 times less risky than CATERPILLAR. It trades about 0.11 of its potential returns per unit of risk. CATERPILLAR FINANCIAL SERVICES is currently generating about 0.02 per unit of risk. If you would invest 1,035 in Inflection Point Acquisition on September 3, 2024 and sell it today you would earn a total of 65.00 from holding Inflection Point Acquisition or generate 6.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.14% |
| Values | Daily Returns |
Inflection Point Acquisition vs. CATERPILLAR FINANCIAL SERVICES
Performance |
| Timeline |
| Inflection Point Acq |
| CATERPILLAR FINANCIAL |
Inflection Point and CATERPILLAR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inflection Point and CATERPILLAR
The main advantage of trading using opposite Inflection Point and CATERPILLAR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inflection Point position performs unexpectedly, CATERPILLAR 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 CATERPILLAR will offset losses from the drop in CATERPILLAR's long position.| Inflection Point vs. Arrow Electronics | Inflection Point vs. BioNTech SE | Inflection Point vs. BJs Restaurants | Inflection Point vs. Yum Brands |
| CATERPILLAR vs. Contagious Gaming | CATERPILLAR vs. Inflection Point Acquisition | CATERPILLAR vs. Hafnia Limited | CATERPILLAR vs. Western Acquisition Ventures |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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