Correlation Between Inflection Point and Nabors Energy

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

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

Diversification Opportunities for Inflection Point and Nabors Energy

0.51

Correlation Coefficient

Inflection Point  Nabors Energy

Very weak diversification

The 3 months correlation between Inflection and Nabors is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Inflection Point Acquisition and Nabors Energy Transition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nabors Energy Transition and Inflection Point 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 Inflection Point Acquisition are associated (or correlated) with Nabors Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nabors Energy Transition has no effect on the direction of Inflection Point i.e., Inflection Point and Nabors Energy go up and down completely randomly.

Pair Corralation between Inflection Point and Nabors Energy

Assuming the 90 days horizon Inflection Point Acquisition is expected to generate 1.28 times more return on investment than Nabors Energy. However, Inflection Point is 1.28 times more volatile than Nabors Energy Transition. It trades about 0.14 of its potential returns per unit of risk. Nabors Energy Transition is currently generating about 0.07 per unit of risk. If you would invest  1,015  in Inflection Point Acquisition on May 26, 2025 and sell it today you would earn a total of  42.00  from holding Inflection Point Acquisition or generate 4.14% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	95.24%
Values	Daily Returns

Inflection Point Acquisition  vs.  Nabors Energy Transition

Inflection Point Acq

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Inflection Point Acquisition are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Inflection Point is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Nabors Energy Transition

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Nabors Energy Transition are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, Nabors Energy is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Inflection Point and Nabors Energy

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

The idea behind Inflection Point Acquisition and Nabors Energy Transition 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.