Correlation Between Rocky Brands and IX Acquisition
Can any of the company-specific risk be diversified away by investing in both Rocky Brands and IX 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 Rocky Brands and IX Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rocky Brands and IX Acquisition Corp, you can compare the effects of market volatilities on Rocky Brands and IX 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 Rocky Brands with a short position of IX Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rocky Brands and IX Acquisition.
Diversification Opportunities for Rocky Brands and IX Acquisition
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Rocky and IXAQU is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Rocky Brands and IX Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IX Acquisition Corp and Rocky Brands 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 Rocky Brands are associated (or correlated) with IX Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IX Acquisition Corp has no effect on the direction of Rocky Brands i.e., Rocky Brands and IX Acquisition go up and down completely randomly.
Pair Corralation between Rocky Brands and IX Acquisition
Given the investment horizon of 90 days Rocky Brands is expected to under-perform the IX Acquisition. In addition to that, Rocky Brands is 2.65 times more volatile than IX Acquisition Corp. It trades about -0.1 of its total potential returns per unit of risk. IX Acquisition Corp is currently generating about 0.1 per unit of volatility. If you would invest 1,004 in IX Acquisition Corp on September 1, 2024 and sell it today you would earn a total of 137.00 from holding IX Acquisition Corp or generate 13.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 76.98% |
| Values | Daily Returns |
Rocky Brands vs. IX Acquisition Corp
Performance |
| Timeline |
| Rocky Brands |
| IX Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Rocky Brands and IX Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rocky Brands and IX Acquisition
The main advantage of trading using opposite Rocky Brands and IX Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rocky Brands position performs unexpectedly, IX 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 IX Acquisition will offset losses from the drop in IX Acquisition's long position.| Rocky Brands vs. Vera Bradley | Rocky Brands vs. Steven Madden | Rocky Brands vs. Wolverine World Wide | Rocky Brands vs. Caleres |
| IX Acquisition vs. Paysafe | IX Acquisition vs. Cadence Design Systems | IX Acquisition vs. Rumble Inc | IX Acquisition vs. Entegris |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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