Correlation Between Inflection Point and TriSalus Life

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

Diversification Opportunities for Inflection Point and TriSalus Life

-0.73

Correlation Coefficient

Inflection Point  TriSalus Life

Pay attention - limited upside

The 3 months correlation between Inflection and TriSalus is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Inflection Point Acquisition and TriSalus Life Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TriSalus Life Sciences 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 TriSalus Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TriSalus Life Sciences has no effect on the direction of Inflection Point i.e., Inflection Point and TriSalus Life go up and down completely randomly.

Pair Corralation between Inflection Point and TriSalus Life

Assuming the 90 days horizon Inflection Point Acquisition is expected to generate 4.0 times more return on investment than TriSalus Life. However, Inflection Point is 4.0 times more volatile than TriSalus Life Sciences. It trades about 0.05 of its potential returns per unit of risk. TriSalus Life Sciences is currently generating about 0.06 per unit of risk. If you would invest  0.00  in Inflection Point Acquisition on October 25, 2024 and sell it today you would earn a total of  1,295  from holding Inflection Point Acquisition or generate 9.223372036854776E16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	88.75%
Values	Daily Returns

Inflection Point Acquisition  vs.  TriSalus Life Sciences

Inflection Point Acq

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Inflection Point Acquisition are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively abnormal basic indicators, Inflection Point unveiled solid returns over the last few months and may actually be approaching a breakup point.

TriSalus Life Sciences

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in TriSalus Life Sciences are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile forward indicators, TriSalus Life may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Inflection Point and TriSalus Life

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

The idea behind Inflection Point Acquisition and TriSalus Life Sciences 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.