Correlation Between IX Acquisition and Church Crawford

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

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

Diversification Opportunities for IX Acquisition and Church Crawford

-0.06

Correlation Coefficient

IX Acquisition  Church Crawford

Good diversification

The 3 months correlation between IXAQ and Church is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding IX Acquisition Corp and Church Crawford in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Church Crawford and IX 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 IX Acquisition Corp are associated (or correlated) with Church Crawford. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Church Crawford has no effect on the direction of IX Acquisition i.e., IX Acquisition and Church Crawford go up and down completely randomly.

Pair Corralation between IX Acquisition and Church Crawford

Given the investment horizon of 90 days IX Acquisition is expected to generate 65.63 times less return on investment than Church Crawford. But when comparing it to its historical volatility, IX Acquisition Corp is 21.02 times less risky than Church Crawford. It trades about 0.02 of its potential returns per unit of risk. Church Crawford is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  0.20  in Church Crawford on September 13, 2024 and sell it today you would lose (0.04) from holding Church Crawford or give up 20.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	97.73%
Values	Daily Returns

IX Acquisition Corp  vs.  Church Crawford

IX Acquisition Corp

Risk-Adjusted Performance

2 of 100

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.

Church Crawford

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Church Crawford are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Church Crawford reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with IX Acquisition and Church Crawford

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

The idea behind IX Acquisition Corp and Church Crawford 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.