Correlation Between Armada Acquisition and Anthemis Digital
Can any of the company-specific risk be diversified away by investing in both Armada Acquisition and Anthemis Digital 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 Armada Acquisition and Anthemis Digital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Armada Acquisition Corp and Anthemis Digital Acquisitions, you can compare the effects of market volatilities on Armada Acquisition and Anthemis Digital 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 Armada Acquisition with a short position of Anthemis Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Acquisition and Anthemis Digital.
Diversification Opportunities for Armada Acquisition and Anthemis Digital
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Armada and Anthemis is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Armada Acquisition Corp and Anthemis Digital Acquisitions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anthemis Digital Acq and Armada 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 Armada Acquisition Corp are associated (or correlated) with Anthemis Digital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anthemis Digital Acq has no effect on the direction of Armada Acquisition i.e., Armada Acquisition and Anthemis Digital go up and down completely randomly.
Pair Corralation between Armada Acquisition and Anthemis Digital
If you would invest 6.00 in Armada Acquisition Corp on August 26, 2024 and sell it today you would lose (6.00) from holding Armada Acquisition Corp or give up 100.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 0.53% |
| Values | Daily Returns |
Armada Acquisition Corp vs. Anthemis Digital Acquisitions
Performance |
| Timeline |
| Armada Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Anthemis Digital Acq |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Armada Acquisition and Anthemis Digital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Armada Acquisition and Anthemis Digital
The main advantage of trading using opposite Armada Acquisition and Anthemis Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Acquisition position performs unexpectedly, Anthemis Digital 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 Anthemis Digital will offset losses from the drop in Anthemis Digital's long position.The idea behind Armada Acquisition Corp and Anthemis Digital Acquisitions 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |