Correlation Between IX Acquisition and Keyarch Acquisition
Can any of the company-specific risk be diversified away by investing in both IX Acquisition and Keyarch Acquisition 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 Keyarch Acquisition 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 Keyarch Acquisition, you can compare the effects of market volatilities on IX Acquisition and Keyarch Acquisition 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 Keyarch Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of IX Acquisition and Keyarch Acquisition.
Diversification Opportunities for IX Acquisition and Keyarch Acquisition
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IXAQ and Keyarch is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding IX Acquisition Corp and Keyarch Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keyarch Acquisition 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 Keyarch Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keyarch Acquisition has no effect on the direction of IX Acquisition i.e., IX Acquisition and Keyarch Acquisition go up and down completely randomly.
Pair Corralation between IX Acquisition and Keyarch Acquisition
Given the investment horizon of 90 days IX Acquisition is expected to generate 4.15 times less return on investment than Keyarch Acquisition. But when comparing it to its historical volatility, IX Acquisition Corp is 4.53 times less risky than Keyarch Acquisition. It trades about 0.09 of its potential returns per unit of risk. Keyarch Acquisition is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,034 in Keyarch Acquisition on November 2, 2024 and sell it today you would earn a total of 120.00 from holding Keyarch Acquisition or generate 11.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 21.91% |
| Values | Daily Returns |
IX Acquisition Corp vs. Keyarch Acquisition
Performance |
| Timeline |
| IX Acquisition Corp |
| Keyarch Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
IX Acquisition and Keyarch Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IX Acquisition and Keyarch Acquisition
The main advantage of trading using opposite IX Acquisition and Keyarch Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IX Acquisition position performs unexpectedly, Keyarch Acquisition 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 Keyarch Acquisition will offset losses from the drop in Keyarch Acquisition's long position.The idea behind IX Acquisition Corp and Keyarch Acquisition 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |