Correlation Between NCR Atleos and Inflection Point

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

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

Diversification Opportunities for NCR Atleos and Inflection Point

0.59

Correlation Coefficient

NCR Atleos  Inflection Point

Very weak diversification

The 3 months correlation between NCR and Inflection is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding NCR Atleos and Inflection Point Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inflection Point Acq and NCR Atleos 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 NCR Atleos are associated (or correlated) with Inflection Point. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inflection Point Acq has no effect on the direction of NCR Atleos i.e., NCR Atleos and Inflection Point go up and down completely randomly.

Pair Corralation between NCR Atleos and Inflection Point

Given the investment horizon of 90 days NCR Atleos is expected to under-perform the Inflection Point. But the stock apears to be less risky and, when comparing its historical volatility, NCR Atleos is 2.49 times less risky than Inflection Point. The stock trades about -0.19 of its potential returns per unit of risk. The Inflection Point Acquisition is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest  1,255  in Inflection Point Acquisition on December 29, 2024 and sell it today you would lose (198.00) from holding Inflection Point Acquisition or give up 15.78% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	83.61%
Values	Daily Returns

NCR Atleos  vs.  Inflection Point Acquisition

NCR Atleos

Risk-Adjusted Performance

Very Weak

Over the last 90 days NCR Atleos has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

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 weak 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.

Pair Trading with NCR Atleos and Inflection Point

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

The idea behind NCR Atleos and Inflection Point 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.

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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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.