Correlation Between IX Acquisition and DHCA Old
Can any of the company-specific risk be diversified away by investing in both IX Acquisition and DHCA Old 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 IX Acquisition and DHCA Old into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IX Acquisition Corp and DHCA Old, you can compare the effects of market volatilities on IX Acquisition and DHCA Old 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 IX Acquisition with a short position of DHCA Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of IX Acquisition and DHCA Old.
Diversification Opportunities for IX Acquisition and DHCA Old
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between IXAQ and DHCA is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding IX Acquisition Corp and DHCA Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DHCA Old and IX Acquisition 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 IX Acquisition Corp are associated (or correlated) with DHCA Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DHCA Old has no effect on the direction of IX Acquisition i.e., IX Acquisition and DHCA Old go up and down completely randomly.
Pair Corralation between IX Acquisition and DHCA Old
If you would invest 1,155 in IX Acquisition Corp on November 4, 2024 and sell it today you would earn a total of 8.00 from holding IX Acquisition Corp or generate 0.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
IX Acquisition Corp vs. DHCA Old
Performance |
| Timeline |
| IX Acquisition Corp |
| DHCA Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
IX Acquisition and DHCA Old Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IX Acquisition and DHCA Old
The main advantage of trading using opposite IX Acquisition and DHCA Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IX Acquisition position performs unexpectedly, DHCA Old 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 DHCA Old will offset losses from the drop in DHCA Old's long position.The idea behind IX Acquisition Corp and DHCA Old pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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