Correlation Between Alset Capital and CLIMATEROCK
Can any of the company-specific risk be diversified away by investing in both Alset Capital and CLIMATEROCK 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 Alset Capital and CLIMATEROCK into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alset Capital Acquisition and CLIMATEROCK, you can compare the effects of market volatilities on Alset Capital and CLIMATEROCK 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 Alset Capital with a short position of CLIMATEROCK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alset Capital and CLIMATEROCK.
Diversification Opportunities for Alset Capital and CLIMATEROCK
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Alset and CLIMATEROCK is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Alset Capital Acquisition and CLIMATEROCK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CLIMATEROCK and Alset Capital 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 Alset Capital Acquisition are associated (or correlated) with CLIMATEROCK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CLIMATEROCK has no effect on the direction of Alset Capital i.e., Alset Capital and CLIMATEROCK go up and down completely randomly.
Pair Corralation between Alset Capital and CLIMATEROCK
If you would invest 12.00 in CLIMATEROCK on September 1, 2024 and sell it today you would lose (3.85) from holding CLIMATEROCK or give up 32.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 3.03% |
| Values | Daily Returns |
Alset Capital Acquisition vs. CLIMATEROCK
Performance |
| Timeline |
| Alset Capital Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| CLIMATEROCK |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Alset Capital and CLIMATEROCK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alset Capital and CLIMATEROCK
The main advantage of trading using opposite Alset Capital and CLIMATEROCK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alset Capital position performs unexpectedly, CLIMATEROCK 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 CLIMATEROCK will offset losses from the drop in CLIMATEROCK's long position.The idea behind Alset Capital Acquisition and CLIMATEROCK 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.| CLIMATEROCK vs. PowerUp Acquisition Corp | CLIMATEROCK vs. HUMANA INC | CLIMATEROCK vs. Aquagold International | CLIMATEROCK vs. Barloworld Ltd ADR |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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