Correlation Between Acm Research and Plum Acquisition
Can any of the company-specific risk be diversified away by investing in both Acm Research and Plum 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 Acm Research and Plum Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acm Research and Plum Acquisition Corp, you can compare the effects of market volatilities on Acm Research and Plum 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 Acm Research with a short position of Plum Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acm Research and Plum Acquisition.
Diversification Opportunities for Acm Research and Plum Acquisition
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Acm and Plum is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Acm Research and Plum Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Plum Acquisition Corp and Acm Research 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 Acm Research are associated (or correlated) with Plum Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Plum Acquisition Corp has no effect on the direction of Acm Research i.e., Acm Research and Plum Acquisition go up and down completely randomly.
Pair Corralation between Acm Research and Plum Acquisition
Given the investment horizon of 90 days Acm Research is expected to generate 246.14 times less return on investment than Plum Acquisition. But when comparing it to its historical volatility, Acm Research is 17.99 times less risky than Plum Acquisition. It trades about 0.01 of its potential returns per unit of risk. Plum Acquisition Corp is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 0.07 in Plum Acquisition Corp on September 14, 2024 and sell it today you would earn a total of 20.93 from holding Plum Acquisition Corp or generate 29900.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 49.4% |
| Values | Daily Returns |
Acm Research vs. Plum Acquisition Corp
Performance |
| Timeline |
| Acm Research |
| Plum Acquisition Corp |
Acm Research and Plum Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acm Research and Plum Acquisition
The main advantage of trading using opposite Acm Research and Plum Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acm Research position performs unexpectedly, Plum 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 Plum Acquisition will offset losses from the drop in Plum Acquisition's long position.| Acm Research vs. Axcelis Technologies | Acm Research vs. inTest | Acm Research vs. Lam Research Corp | Acm Research vs. Photronics |
| Plum Acquisition vs. Voyager Acquisition Corp | Plum Acquisition vs. YHN Acquisition I | Plum Acquisition vs. CO2 Energy Transition | Plum Acquisition vs. Vine Hill Capital |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |