Correlation Between AMTD Digital and INPX Old

Can any of the company-specific risk be diversified away by investing in both AMTD Digital and INPX Old 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 AMTD Digital and INPX Old into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between AMTD Digital and INPX Old, you can compare the effects of market volatilities on AMTD Digital and INPX Old 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 AMTD Digital with a short position of INPX Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMTD Digital and INPX Old.

Diversification Opportunities for AMTD Digital and INPX Old

0.0

Correlation Coefficient

AMTD Digital  INPX Old

Pay attention - limited upside

The 3 months correlation between AMTD and INPX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AMTD Digital and INPX Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INPX Old and AMTD Digital 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 AMTD Digital are associated (or correlated) with INPX Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INPX Old has no effect on the direction of AMTD Digital i.e., AMTD Digital and INPX Old go up and down completely randomly.

Pair Corralation between AMTD Digital and INPX Old

Considering the 90-day investment horizon AMTD Digital is expected to generate 0.31 times more return on investment than INPX Old. However, AMTD Digital is 3.21 times less risky than INPX Old. It trades about -0.04 of its potential returns per unit of risk. INPX Old is currently generating about -0.07 per unit of risk. If you would invest  1,180  in AMTD Digital on October 9, 2024 and sell it today you would lose (888.00) from holding AMTD Digital or give up 75.25% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	26.26%
Values	Daily Returns

AMTD Digital  vs.  INPX Old

AMTD Digital

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days AMTD Digital has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's forward-looking signals remain rather sound which may send shares a bit higher in February 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

INPX Old

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days INPX Old has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, INPX Old is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with AMTD Digital and INPX Old

The main advantage of trading using opposite AMTD Digital and INPX Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMTD Digital position performs unexpectedly, INPX Old 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 INPX Old will offset losses from the drop in INPX Old's long position.

The idea behind AMTD Digital and INPX Old 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 Global Correlations module to find global opportunities by holding instruments from different markets.