Correlation Between IX Acquisition and Frontier Investment
Can any of the company-specific risk be diversified away by investing in both IX Acquisition and Frontier Investment 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 Frontier Investment 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 Frontier Investment Corp, you can compare the effects of market volatilities on IX Acquisition and Frontier Investment 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 Frontier Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of IX Acquisition and Frontier Investment.
Diversification Opportunities for IX Acquisition and Frontier Investment
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between IXAQ and Frontier is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding IX Acquisition Corp and Frontier Investment Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Frontier Investment Corp 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 Frontier Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Frontier Investment Corp has no effect on the direction of IX Acquisition i.e., IX Acquisition and Frontier Investment go up and down completely randomly.
Pair Corralation between IX Acquisition and Frontier Investment
If you would invest 1,050 in Frontier Investment Corp on September 5, 2024 and sell it today you would earn a total of 0.00 from holding Frontier Investment Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
IX Acquisition Corp vs. Frontier Investment Corp
Performance |
| Timeline |
| IX Acquisition Corp |
| Frontier Investment Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
IX Acquisition and Frontier Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IX Acquisition and Frontier Investment
The main advantage of trading using opposite IX Acquisition and Frontier Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IX Acquisition position performs unexpectedly, Frontier Investment 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 Frontier Investment will offset losses from the drop in Frontier Investment's long position.| IX Acquisition vs. Thunder Bridge Capital | IX Acquisition vs. Welsbach Technology Metals | IX Acquisition vs. BurTech Acquisition Corp |
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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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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