Correlation Between ACABW Old and Canna Global
Can any of the company-specific risk be diversified away by investing in both ACABW Old and Canna Global 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 ACABW Old and Canna Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ACABW Old and Canna Global Acquisition Corp, you can compare the effects of market volatilities on ACABW Old and Canna Global 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 ACABW Old with a short position of Canna Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of ACABW Old and Canna Global.
Diversification Opportunities for ACABW Old and Canna Global
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ACABW and Canna is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ACABW Old and Canna Global Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canna Global Acquisi and ACABW Old 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 ACABW Old are associated (or correlated) with Canna Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canna Global Acquisi has no effect on the direction of ACABW Old i.e., ACABW Old and Canna Global go up and down completely randomly.
Pair Corralation between ACABW Old and Canna Global
If you would invest (100.00) in Canna Global Acquisition Corp on January 21, 2025 and sell it today you would earn a total of 100.00 from holding Canna Global Acquisition Corp or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ACABW Old vs. Canna Global Acquisition Corp
Performance |
| Timeline |
| ACABW Old |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Canna Global Acquisi |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
ACABW Old and Canna Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ACABW Old and Canna Global
The main advantage of trading using opposite ACABW Old and Canna Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ACABW Old position performs unexpectedly, Canna Global 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 Canna Global will offset losses from the drop in Canna Global's long position.The idea behind ACABW Old and Canna Global Acquisition Corp 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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