Correlation Between Inflection Point and SOUTHERN
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By analyzing existing cross correlation between Inflection Point Acquisition and SOUTHERN CALIF GAS, you can compare the effects of market volatilities on Inflection Point and SOUTHERN 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 SOUTHERN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inflection Point and SOUTHERN.
Diversification Opportunities for Inflection Point and SOUTHERN
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Inflection and SOUTHERN is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Inflection Point Acquisition and SOUTHERN CALIF GAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SOUTHERN CALIF GAS 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 SOUTHERN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SOUTHERN CALIF GAS has no effect on the direction of Inflection Point i.e., Inflection Point and SOUTHERN go up and down completely randomly.
Pair Corralation between Inflection Point and SOUTHERN
Assuming the 90 days horizon Inflection Point is expected to generate 2.8 times less return on investment than SOUTHERN. But when comparing it to its historical volatility, Inflection Point Acquisition is 1.81 times less risky than SOUTHERN. It trades about 0.05 of its potential returns per unit of risk. SOUTHERN CALIF GAS is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 9,304 in SOUTHERN CALIF GAS on September 12, 2024 and sell it today you would earn a total of 67.00 from holding SOUTHERN CALIF GAS or generate 0.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 92.58% |
| Values | Daily Returns |
Inflection Point Acquisition vs. SOUTHERN CALIF GAS
Performance |
| Timeline |
| Inflection Point Acq |
| SOUTHERN CALIF GAS |
Inflection Point and SOUTHERN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inflection Point and SOUTHERN
The main advantage of trading using opposite Inflection Point and SOUTHERN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inflection Point position performs unexpectedly, SOUTHERN 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 SOUTHERN will offset losses from the drop in SOUTHERN's long position.| Inflection Point vs. 51Talk Online Education | Inflection Point vs. CarsalesCom Ltd ADR | Inflection Point vs. Osaka Steel Co, | Inflection Point vs. Marchex |
| SOUTHERN vs. Viemed Healthcare | SOUTHERN vs. Inflection Point Acquisition | SOUTHERN vs. Neogen | SOUTHERN vs. Hurco Companies |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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