Correlation Between InFintT Acquisition and Heating Oil

Can any of the company-specific risk be diversified away by investing in both InFintT Acquisition and Heating Oil 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 InFintT Acquisition and Heating Oil into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for InFintT Acquisition and Heating Oil

0.0

Correlation Coefficient

InFintT Acquisition  Heating Oil

Pay attention - limited upside

The 3 months correlation between InFintT and Heating is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding InFintT Acquisition Corp and Heating Oil in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heating Oil and InFintT Acquisition 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 InFintT Acquisition Corp are associated (or correlated) with Heating Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heating Oil has no effect on the direction of InFintT Acquisition i.e., InFintT Acquisition and Heating Oil go up and down completely randomly.

Pair Corralation between InFintT Acquisition and Heating Oil

If you would invest  1,118  in InFintT Acquisition Corp on February 26, 2024 and sell it today you would earn a total of  41.00  from holding InFintT Acquisition Corp or generate 3.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

InFintT Acquisition Corp  vs.  Heating Oil

InFintT Acquisition Corp

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in InFintT Acquisition Corp are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy forward indicators, InFintT Acquisition is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Heating Oil

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Heating Oil has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Commodity's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for Heating Oil shareholders.

Pair Trading with InFintT Acquisition and Heating Oil

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

The idea behind InFintT Acquisition Corp and Heating Oil 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.