Correlation Between IX Acquisition and Worldwide Webb
Can any of the company-specific risk be diversified away by investing in both IX Acquisition and Worldwide Webb 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 Worldwide Webb 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 Worldwide Webb Acquisition, you can compare the effects of market volatilities on IX Acquisition and Worldwide Webb 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 Worldwide Webb. Check out your portfolio center. Please also check ongoing floating volatility patterns of IX Acquisition and Worldwide Webb.
Diversification Opportunities for IX Acquisition and Worldwide Webb
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between IXAQU and Worldwide is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding IX Acquisition Corp and Worldwide Webb Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Worldwide Webb Acqui 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 Worldwide Webb. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Worldwide Webb Acqui has no effect on the direction of IX Acquisition i.e., IX Acquisition and Worldwide Webb go up and down completely randomly.
Pair Corralation between IX Acquisition and Worldwide Webb
Assuming the 90 days horizon IX Acquisition Corp is expected to generate 0.76 times more return on investment than Worldwide Webb. However, IX Acquisition Corp is 1.32 times less risky than Worldwide Webb. It trades about 0.03 of its potential returns per unit of risk. Worldwide Webb Acquisition is currently generating about 0.02 per unit of risk. If you would invest 1,018 in IX Acquisition Corp on August 26, 2024 and sell it today you would earn a total of 123.00 from holding IX Acquisition Corp or generate 12.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 33.76% |
| Values | Daily Returns |
IX Acquisition Corp vs. Worldwide Webb Acquisition
Performance |
| Timeline |
| IX Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Worldwide Webb Acqui |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
IX Acquisition and Worldwide Webb Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IX Acquisition and Worldwide Webb
The main advantage of trading using opposite IX Acquisition and Worldwide Webb positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IX Acquisition position performs unexpectedly, Worldwide Webb 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 Worldwide Webb will offset losses from the drop in Worldwide Webb's long position.| IX Acquisition vs. Merit Medical Systems | IX Acquisition vs. Amgen Inc | IX Acquisition vs. Cumberland Pharmaceuticals | IX Acquisition vs. Agnico Eagle Mines |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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