Correlation Between 26 Capital and New Generation
Can any of the company-specific risk be diversified away by investing in both 26 Capital and New Generation 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 26 Capital and New Generation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 26 Capital Acquisition and New Generation Consumer, you can compare the effects of market volatilities on 26 Capital and New Generation 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 26 Capital with a short position of New Generation. Check out your portfolio center. Please also check ongoing floating volatility patterns of 26 Capital and New Generation.
Diversification Opportunities for 26 Capital and New Generation
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ADERW and New is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding 26 Capital Acquisition and New Generation Consumer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New Generation Consumer and 26 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 26 Capital Acquisition are associated (or correlated) with New Generation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New Generation Consumer has no effect on the direction of 26 Capital i.e., 26 Capital and New Generation go up and down completely randomly.
Pair Corralation between 26 Capital and New Generation
If you would invest 0.06 in New Generation Consumer on November 3, 2024 and sell it today you would lose (0.01) from holding New Generation Consumer or give up 16.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
26 Capital Acquisition vs. New Generation Consumer
Performance |
| Timeline |
| 26 Capital Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| New Generation Consumer |
26 Capital and New Generation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 26 Capital and New Generation
The main advantage of trading using opposite 26 Capital and New Generation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 26 Capital position performs unexpectedly, New Generation 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 New Generation will offset losses from the drop in New Generation's long position.The idea behind 26 Capital Acquisition and New Generation Consumer 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.| New Generation vs. Xtra Energy Corp | New Generation vs. Arsenal Digital Holdings | New Generation vs. UHF Logistics Group | New Generation vs. XCana Petroleum |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |