Correlation Between Integrated Rail and Acri Capital

Can any of the company-specific risk be diversified away by investing in both Integrated Rail and Acri Capital 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 Integrated Rail and Acri Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Integrated Rail and and Acri Capital Acquisition, you can compare the effects of market volatilities on Integrated Rail and Acri Capital 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 Integrated Rail with a short position of Acri Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integrated Rail and Acri Capital.

Diversification Opportunities for Integrated Rail and Acri Capital

0.34

Correlation Coefficient

Integrated Rail  Acri Capital

Weak diversification

The 3 months correlation between Integrated and Acri is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Integrated Rail and and Acri Capital Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acri Capital Acquisition and Integrated Rail 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 Integrated Rail and are associated (or correlated) with Acri Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acri Capital Acquisition has no effect on the direction of Integrated Rail i.e., Integrated Rail and Acri Capital go up and down completely randomly.

Pair Corralation between Integrated Rail and Acri Capital

If you would invest  1,076  in Integrated Rail and on September 13, 2024 and sell it today you would earn a total of  0.00  from holding Integrated Rail and or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	8.33%
Values	Daily Returns

Integrated Rail and  vs.  Acri Capital Acquisition

Integrated Rail

Risk-Adjusted Performance

0 of 100

Very Weak

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

Acri Capital Acquisition

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Integrated Rail and Acri Capital

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

The idea behind Integrated Rail and and Acri Capital Acquisition 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 Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.