Correlation Between Sea and IX Acquisition
Can any of the company-specific risk be diversified away by investing in both Sea 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 Sea and IX Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sea and IX Acquisition Corp, you can compare the effects of market volatilities on Sea 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 Sea with a short position of IX Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sea and IX Acquisition.
Diversification Opportunities for Sea and IX Acquisition
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Sea and IXAQU is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Sea 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 Sea 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 Sea 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 Sea i.e., Sea and IX Acquisition go up and down completely randomly.
Pair Corralation between Sea and IX Acquisition
Allowing for the 90-day total investment horizon Sea is expected to generate 3.36 times more return on investment than IX Acquisition. However, Sea is 3.36 times more volatile than IX Acquisition Corp. It trades about 0.06 of its potential returns per unit of risk. IX Acquisition Corp is currently generating about 0.02 per unit of risk. If you would invest 6,503 in Sea on September 2, 2024 and sell it today you would earn a total of 4,877 from holding Sea or generate 75.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 91.94% |
| Values | Daily Returns |
Sea vs. IX Acquisition Corp
Performance |
| Timeline |
| Sea |
| IX Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Sea and IX Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sea and IX Acquisition
The main advantage of trading using opposite Sea and IX Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sea 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.| Sea vs. Atari SA | Sea vs. Victory Square Technologies | Sea vs. Motorsport Gaming Us | Sea vs. Alpha Esports Tech |
| IX Acquisition vs. Under Armour C | IX Acquisition vs. Shoe Carnival | IX Acquisition vs. Commonwealth Bank of | IX Acquisition vs. BCB Bancorp |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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