Correlation Between Xp and IX Acquisition
Can any of the company-specific risk be diversified away by investing in both Xp 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 Xp and IX Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xp Inc and IX Acquisition Corp, you can compare the effects of market volatilities on Xp 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 Xp with a short position of IX Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xp and IX Acquisition.
Diversification Opportunities for Xp and IX Acquisition
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xp and IXAQ is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Xp Inc 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 Xp 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 Xp Inc 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 Xp i.e., Xp and IX Acquisition go up and down completely randomly.
Pair Corralation between Xp and IX Acquisition
Allowing for the 90-day total investment horizon Xp Inc is expected to under-perform the IX Acquisition. In addition to that, Xp is 4.16 times more volatile than IX Acquisition Corp. It trades about -0.07 of its total potential returns per unit of risk. IX Acquisition Corp is currently generating about 0.03 per unit of volatility. If you would invest 1,135 in IX Acquisition Corp on August 29, 2024 and sell it today you would earn a total of 20.00 from holding IX Acquisition Corp or generate 1.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xp Inc vs. IX Acquisition Corp
Performance |
| Timeline |
| Xp Inc |
| IX Acquisition Corp |
Xp and IX Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xp and IX Acquisition
The main advantage of trading using opposite Xp and IX Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xp 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.| Xp vs. Raymond James Financial | Xp vs. Evercore Partners | Xp vs. Selective Insurance Group | Xp vs. Reinsurance Group of |
| IX Acquisition vs. Thunder Bridge Capital | IX Acquisition vs. Welsbach Technology Metals | IX Acquisition vs. BurTech Acquisition Corp |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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