Correlation Between Senior Connect and IX Acquisition

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Can any of the company-specific risk be diversified away by investing in both Senior Connect and IX Acquisition 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 Senior Connect and IX Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Senior Connect Acquisition and IX Acquisition Corp, you can compare the effects of market volatilities on Senior Connect and IX Acquisition 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 Senior Connect with a short position of IX Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Senior Connect and IX Acquisition.

Diversification Opportunities for Senior Connect and IX Acquisition

SeniorIXAQDiversified AwaySeniorIXAQDiversified Away100%
-0.14
  Correlation Coefficient

Good diversification

The 3 months correlation between Senior and IXAQ is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Senior Connect Acquisition and IX Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IX Acquisition Corp and Senior Connect 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 Senior Connect Acquisition are associated (or correlated) with IX Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IX Acquisition Corp has no effect on the direction of Senior Connect i.e., Senior Connect and IX Acquisition go up and down completely randomly.

Pair Corralation between Senior Connect and IX Acquisition

If you would invest  1,147  in IX Acquisition Corp on September 4, 2024 and sell it today you would earn a total of  16.00  from holding IX Acquisition Corp or generate 1.39% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy1.59%
ValuesDaily Returns

Senior Connect Acquisition  vs.  IX Acquisition Corp

 Performance 
JavaScript chart by amCharts 3.21.15SepOctNov 01234
JavaScript chart by amCharts 3.21.15SNRH IXAQ
       Timeline  
Senior Connect Acqui 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Senior Connect Acquisition has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Senior Connect is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.
IX Acquisition Corp 

Risk-Adjusted Performance

2 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in IX Acquisition Corp are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, IX Acquisition is not utilizing all of its potentials. The newest stock price agitation, may contribute to short-term losses for the retail investors.
JavaScript chart by amCharts 3.21.15OctNovNovDec11.211.311.411.511.611.711.811.912

Senior Connect and IX Acquisition Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-0.5-0.29-0.0972-0.04740.00.04390.09510.290.50.71 24681012
JavaScript chart by amCharts 3.21.15SNRH IXAQ
       Returns  

Pair Trading with Senior Connect and IX Acquisition

The main advantage of trading using opposite Senior Connect and IX Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Senior Connect position performs unexpectedly, IX Acquisition 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 IX Acquisition will offset losses from the drop in IX Acquisition's long position.
The idea behind Senior Connect Acquisition and IX Acquisition Corp 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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