Correlation Between INPX Old and AMTD Digital

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

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

Diversification Opportunities for INPX Old and AMTD Digital

0.0

Correlation Coefficient

INPX Old  AMTD Digital

Pay attention - limited upside

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

Pair Corralation between INPX Old and AMTD Digital

If you would invest (100.00) in INPX Old on December 18, 2024 and sell it today you would earn a total of  100.00  from holding INPX Old or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

INPX Old  vs.  AMTD Digital

INPX Old

Risk-Adjusted Performance

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 recent stock price disturbance, may contribute to short-term losses for the investors.

AMTD Digital

Risk-Adjusted Performance

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 latest weak performance, the Stock's forward-looking signals remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with INPX Old and AMTD Digital

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

The idea behind INPX Old and AMTD Digital 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.