Correlation Between Arbor Realty and Aquaron Acquisition
Can any of the company-specific risk be diversified away by investing in both Arbor Realty and Aquaron Acquisition 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 Arbor Realty and Aquaron Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Arbor Realty Trust and Aquaron Acquisition Corp, you can compare the effects of market volatilities on Arbor Realty and Aquaron Acquisition 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 Arbor Realty with a short position of Aquaron Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arbor Realty and Aquaron Acquisition.
Diversification Opportunities for Arbor Realty and Aquaron Acquisition
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Arbor and Aquaron is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Arbor Realty Trust and Aquaron Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aquaron Acquisition Corp and Arbor Realty 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 Arbor Realty Trust are associated (or correlated) with Aquaron Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aquaron Acquisition Corp has no effect on the direction of Arbor Realty i.e., Arbor Realty and Aquaron Acquisition go up and down completely randomly.
Pair Corralation between Arbor Realty and Aquaron Acquisition
Considering the 90-day investment horizon Arbor Realty Trust is expected to generate 1.08 times more return on investment than Aquaron Acquisition. However, Arbor Realty is 1.08 times more volatile than Aquaron Acquisition Corp. It trades about -0.07 of its potential returns per unit of risk. Aquaron Acquisition Corp is currently generating about -0.2 per unit of risk. If you would invest 1,370 in Arbor Realty Trust on October 29, 2024 and sell it today you would lose (31.00) from holding Arbor Realty Trust or give up 2.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Arbor Realty Trust vs. Aquaron Acquisition Corp
Performance |
| Timeline |
| Arbor Realty Trust |
| Aquaron Acquisition Corp |
Arbor Realty and Aquaron Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arbor Realty and Aquaron Acquisition
The main advantage of trading using opposite Arbor Realty and Aquaron Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arbor Realty position performs unexpectedly, Aquaron Acquisition 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 Aquaron Acquisition will offset losses from the drop in Aquaron Acquisition's long position.| Arbor Realty vs. Starwood Property Trust | Arbor Realty vs. Ready Capital Corp | Arbor Realty vs. Two Harbors Investments | Arbor Realty vs. AGNC Investment Corp |
| Aquaron Acquisition vs. Bellevue Life Sciences | Aquaron Acquisition vs. Alpha One | Aquaron Acquisition vs. Manaris Corp | Aquaron Acquisition vs. A SPAC II |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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