Correlation Between Indigo Acquisition and CompoSecure
Can any of the company-specific risk be diversified away by investing in both Indigo Acquisition and CompoSecure 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 Indigo Acquisition and CompoSecure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Indigo Acquisition Corp and CompoSecure, you can compare the effects of market volatilities on Indigo Acquisition and CompoSecure 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 Indigo Acquisition with a short position of CompoSecure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indigo Acquisition and CompoSecure.
Diversification Opportunities for Indigo Acquisition and CompoSecure
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Indigo and CompoSecure is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Indigo Acquisition Corp and CompoSecure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CompoSecure and Indigo 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 Indigo Acquisition Corp are associated (or correlated) with CompoSecure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CompoSecure has no effect on the direction of Indigo Acquisition i.e., Indigo Acquisition and CompoSecure go up and down completely randomly.
Pair Corralation between Indigo Acquisition and CompoSecure
Assuming the 90 days horizon Indigo Acquisition is expected to generate 33.0 times less return on investment than CompoSecure. But when comparing it to its historical volatility, Indigo Acquisition Corp is 46.99 times less risky than CompoSecure. It trades about 0.43 of its potential returns per unit of risk. CompoSecure is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 395.00 in CompoSecure on April 26, 2025 and sell it today you would earn a total of 294.00 from holding CompoSecure or generate 74.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 27.87% |
| Values | Daily Returns |
Indigo Acquisition Corp vs. CompoSecure
Performance |
| Timeline |
| Indigo Acquisition Corp |
| CompoSecure |
Indigo Acquisition and CompoSecure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Indigo Acquisition and CompoSecure
The main advantage of trading using opposite Indigo Acquisition and CompoSecure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indigo Acquisition position performs unexpectedly, CompoSecure 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 CompoSecure will offset losses from the drop in CompoSecure's long position.| Indigo Acquisition vs. Drugs Made In | Indigo Acquisition vs. dMY Squared Technology | Indigo Acquisition vs. YHN Acquisition I | Indigo Acquisition vs. YHN Acquisition I |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Positions Ratings 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 | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Commodity Directory Find actively traded commodities issued by global exchanges |