Correlation Between Feutune Light and Inflection Point
Can any of the company-specific risk be diversified away by investing in both Feutune Light 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 Feutune Light and Inflection Point into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Feutune Light Acquisition and Inflection Point Acquisition, you can compare the effects of market volatilities on Feutune Light 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 Feutune Light with a short position of Inflection Point. Check out your portfolio center. Please also check ongoing floating volatility patterns of Feutune Light and Inflection Point.
Diversification Opportunities for Feutune Light and Inflection Point
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Feutune and Inflection is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Feutune Light Acquisition 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 Feutune Light 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 Feutune Light Acquisition 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 Feutune Light i.e., Feutune Light and Inflection Point go up and down completely randomly.
Pair Corralation between Feutune Light and Inflection Point
Given the investment horizon of 90 days Feutune Light Acquisition is expected to generate 1.15 times more return on investment than Inflection Point. However, Feutune Light is 1.15 times more volatile than Inflection Point Acquisition. It trades about 0.27 of its potential returns per unit of risk. Inflection Point Acquisition is currently generating about -0.04 per unit of risk. If you would invest 1,089 in Feutune Light Acquisition on March 3, 2024 and sell it today you would earn a total of 21.00 from holding Feutune Light Acquisition or generate 1.93% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Feutune Light Acquisition vs. Inflection Point Acquisition
Performance |
Timeline |
Feutune Light Acquisition |
Inflection Point Acq |
Feutune Light and Inflection Point Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Feutune Light and Inflection Point
The main advantage of trading using opposite Feutune Light and Inflection Point positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Feutune Light 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.Feutune Light vs. Magic Empire Global | Feutune Light vs. Netcapital | Feutune Light vs. Mercurity Fintech Holding | Feutune Light vs. Zhong Yang Financial |
Inflection Point vs. Magic Empire Global | Inflection Point vs. Netcapital | Inflection Point vs. Mercurity Fintech Holding | Inflection Point vs. Zhong Yang Financial |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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