Correlation Between Inflection Point and Cresud SACIF

Can any of the company-specific risk be diversified away by investing in both Inflection Point and Cresud SACIF 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 Inflection Point and Cresud SACIF into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Inflection Point Acquisition and Cresud SACIF y, you can compare the effects of market volatilities on Inflection Point and Cresud SACIF 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 Inflection Point with a short position of Cresud SACIF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inflection Point and Cresud SACIF.

Diversification Opportunities for Inflection Point and Cresud SACIF

0.74

Correlation Coefficient

Inflection Point  Cresud SACIF

Poor diversification

The 3 months correlation between Inflection and Cresud is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Inflection Point Acquisition and Cresud SACIF y in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cresud SACIF y and Inflection Point 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 Inflection Point Acquisition are associated (or correlated) with Cresud SACIF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cresud SACIF y has no effect on the direction of Inflection Point i.e., Inflection Point and Cresud SACIF go up and down completely randomly.

Pair Corralation between Inflection Point and Cresud SACIF

Assuming the 90 days horizon Inflection Point Acquisition is expected to generate 1.81 times more return on investment than Cresud SACIF. However, Inflection Point is 1.81 times more volatile than Cresud SACIF y. It trades about 0.03 of its potential returns per unit of risk. Cresud SACIF y is currently generating about -0.02 per unit of risk. If you would invest  1,345  in Inflection Point Acquisition on October 8, 2024 and sell it today you would earn a total of  6.00  from holding Inflection Point Acquisition or generate 0.45% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Inflection Point Acquisition  vs.  Cresud SACIF y

Inflection Point Acq

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Inflection Point Acquisition are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent basic indicators, Inflection Point unveiled solid returns over the last few months and may actually be approaching a breakup point.

Cresud SACIF y

Risk-Adjusted Performance

19 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Cresud SACIF y are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile basic indicators, Cresud SACIF showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Inflection Point and Cresud SACIF

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

The idea behind Inflection Point Acquisition and Cresud SACIF y 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.

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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.