Correlation Between ACG Acquisition and Wheaton Precious
Can any of the company-specific risk be diversified away by investing in both ACG Acquisition and Wheaton Precious 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 ACG Acquisition and Wheaton Precious into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ACG Acquisition Co and Wheaton Precious Metals, you can compare the effects of market volatilities on ACG Acquisition and Wheaton Precious 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 ACG Acquisition with a short position of Wheaton Precious. Check out your portfolio center. Please also check ongoing floating volatility patterns of ACG Acquisition and Wheaton Precious.
Diversification Opportunities for ACG Acquisition and Wheaton Precious
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ACG and Wheaton is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding ACG Acquisition Co and Wheaton Precious Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wheaton Precious Metals and ACG 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 ACG Acquisition Co are associated (or correlated) with Wheaton Precious. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wheaton Precious Metals has no effect on the direction of ACG Acquisition i.e., ACG Acquisition and Wheaton Precious go up and down completely randomly.
Pair Corralation between ACG Acquisition and Wheaton Precious
Assuming the 90 days trading horizon ACG Acquisition Co is expected to generate 25.65 times more return on investment than Wheaton Precious. However, ACG Acquisition is 25.65 times more volatile than Wheaton Precious Metals. It trades about 0.06 of its potential returns per unit of risk. Wheaton Precious Metals is currently generating about 0.04 per unit of risk. If you would invest 995.00 in ACG Acquisition Co on September 3, 2024 and sell it today you would lose (485.00) from holding ACG Acquisition Co or give up 48.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.58% |
| Values | Daily Returns |
ACG Acquisition Co vs. Wheaton Precious Metals
Performance |
| Timeline |
| ACG Acquisition |
| Wheaton Precious Metals |
ACG Acquisition and Wheaton Precious Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ACG Acquisition and Wheaton Precious
The main advantage of trading using opposite ACG Acquisition and Wheaton Precious positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ACG Acquisition position performs unexpectedly, Wheaton Precious 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 Wheaton Precious will offset losses from the drop in Wheaton Precious' long position.| ACG Acquisition vs. GoldMining | ACG Acquisition vs. CNH Industrial NV | ACG Acquisition vs. Martin Marietta Materials | ACG Acquisition vs. SilverCrest Metals |
| Wheaton Precious vs. Roper Technologies | Wheaton Precious vs. Microchip Technology | Wheaton Precious vs. Tyson Foods Cl | Wheaton Precious vs. Uber Technologies |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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