Correlation Between Inflection Point and Dixons Carphone

Can any of the company-specific risk be diversified away by investing in both Inflection Point and Dixons Carphone 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 Dixons Carphone 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 Dixons Carphone plc, you can compare the effects of market volatilities on Inflection Point and Dixons Carphone 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 Dixons Carphone. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inflection Point and Dixons Carphone.

Diversification Opportunities for Inflection Point and Dixons Carphone

-0.18

Correlation Coefficient

Inflection Point  Dixons Carphone

Good diversification

The 3 months correlation between Inflection and Dixons is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Inflection Point Acquisition and Dixons Carphone plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dixons Carphone plc 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 Dixons Carphone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dixons Carphone plc has no effect on the direction of Inflection Point i.e., Inflection Point and Dixons Carphone go up and down completely randomly.

Pair Corralation between Inflection Point and Dixons Carphone

Assuming the 90 days horizon Inflection Point Acquisition is expected to under-perform the Dixons Carphone. In addition to that, Inflection Point is 2.6 times more volatile than Dixons Carphone plc. It trades about -0.07 of its total potential returns per unit of risk. Dixons Carphone plc is currently generating about 0.02 per unit of volatility. If you would invest  118.00  in Dixons Carphone plc on December 22, 2024 and sell it today you would earn a total of  1.00  from holding Dixons Carphone plc or generate 0.85% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	88.71%
Values	Daily Returns

Inflection Point Acquisition  vs.  Dixons Carphone plc

Inflection Point Acq

Risk-Adjusted Performance

Very Weak

Over the last 90 days Inflection Point Acquisition has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Dixons Carphone plc

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Dixons Carphone plc are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Dixons Carphone is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Inflection Point and Dixons Carphone

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

The idea behind Inflection Point Acquisition and Dixons Carphone plc 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.