Correlation Between Inflection Point and Occidental
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By analyzing existing cross correlation between Inflection Point Acquisition and Occidental Petroleum 66, you can compare the effects of market volatilities on Inflection Point and Occidental 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 Occidental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inflection Point and Occidental.
Diversification Opportunities for Inflection Point and Occidental
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Inflection and Occidental is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Inflection Point Acquisition and Occidental Petroleum 66 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Occidental Petroleum 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 Occidental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Occidental Petroleum has no effect on the direction of Inflection Point i.e., Inflection Point and Occidental go up and down completely randomly.
Pair Corralation between Inflection Point and Occidental
Assuming the 90 days horizon Inflection Point Acquisition is expected to generate 62.86 times more return on investment than Occidental. However, Inflection Point is 62.86 times more volatile than Occidental Petroleum 66. It trades about 0.05 of its potential returns per unit of risk. Occidental Petroleum 66 is currently generating about 0.01 per unit of risk. If you would invest 0.00 in Inflection Point Acquisition on September 5, 2024 and sell it today you would earn a total of 1,100 from holding Inflection Point Acquisition or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 79.75% |
| Values | Daily Returns |
Inflection Point Acquisition vs. Occidental Petroleum 66
Performance |
| Timeline |
| Inflection Point Acq |
| Occidental Petroleum |
Inflection Point and Occidental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inflection Point and Occidental
The main advantage of trading using opposite Inflection Point and Occidental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inflection Point position performs unexpectedly, Occidental 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 Occidental will offset losses from the drop in Occidental's long position.| Inflection Point vs. Olympic Steel | Inflection Point vs. Asbury Automotive Group | Inflection Point vs. Ecolab Inc | Inflection Point vs. Simon Property Group |
| Occidental vs. The Travelers Companies | Occidental vs. GE Aerospace | Occidental vs. Walmart | Occidental vs. Pfizer Inc |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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