Correlation Between Inspirato and Cepton
Can any of the company-specific risk be diversified away by investing in both Inspirato and Cepton 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 Inspirato and Cepton into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inspirato and Cepton Inc, you can compare the effects of market volatilities on Inspirato and Cepton 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 Inspirato with a short position of Cepton. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inspirato and Cepton.
Diversification Opportunities for Inspirato and Cepton
Excellent diversification
The 3 months correlation between Inspirato and Cepton is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Inspirato and Cepton Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cepton Inc and Inspirato 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 Inspirato are associated (or correlated) with Cepton. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cepton Inc has no effect on the direction of Inspirato i.e., Inspirato and Cepton go up and down completely randomly.
Pair Corralation between Inspirato and Cepton
Given the investment horizon of 90 days Inspirato is expected to generate 0.78 times more return on investment than Cepton. However, Inspirato is 1.29 times less risky than Cepton. It trades about -0.06 of its potential returns per unit of risk. Cepton Inc is currently generating about -0.08 per unit of risk. If you would invest 400.00 in Inspirato on August 28, 2024 and sell it today you would lose (27.00) from holding Inspirato or give up 6.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
Inspirato vs. Cepton Inc
Performance |
| Timeline |
| Inspirato |
| Cepton Inc |
Inspirato and Cepton Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inspirato and Cepton
The main advantage of trading using opposite Inspirato and Cepton positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inspirato position performs unexpectedly, Cepton 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 Cepton will offset losses from the drop in Cepton's long position.| Inspirato vs. Trip Group Ltd | Inspirato vs. Yatra Online | Inspirato vs. Travel Leisure Co | Inspirato vs. Mondee Holdings |
| Cepton vs. Cepton Inc | Cepton vs. Thayer Ventures Acquisition | Cepton vs. Anghami Warrants | Cepton vs. Inspirato |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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