Correlation Between AIB Acquisition and Gores Holdings
Can any of the company-specific risk be diversified away by investing in both AIB Acquisition and Gores Holdings 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 AIB Acquisition and Gores Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AIB Acquisition Corp and Gores Holdings IX, you can compare the effects of market volatilities on AIB Acquisition and Gores Holdings 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 AIB Acquisition with a short position of Gores Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIB Acquisition and Gores Holdings.
Diversification Opportunities for AIB Acquisition and Gores Holdings
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AIB and Gores is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding AIB Acquisition Corp and Gores Holdings IX in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gores Holdings IX and AIB 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 AIB Acquisition Corp are associated (or correlated) with Gores Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gores Holdings IX has no effect on the direction of AIB Acquisition i.e., AIB Acquisition and Gores Holdings go up and down completely randomly.
Pair Corralation between AIB Acquisition and Gores Holdings
If you would invest 1,091 in AIB Acquisition Corp on September 3, 2024 and sell it today you would earn a total of 0.00 from holding AIB Acquisition Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 1.56% |
| Values | Daily Returns |
AIB Acquisition Corp vs. Gores Holdings IX
Performance |
| Timeline |
| AIB Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Gores Holdings IX |
AIB Acquisition and Gores Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AIB Acquisition and Gores Holdings
The main advantage of trading using opposite AIB Acquisition and Gores Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIB Acquisition position performs unexpectedly, Gores Holdings 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 Gores Holdings will offset losses from the drop in Gores Holdings' long position.| AIB Acquisition vs. Figs Inc | AIB Acquisition vs. Burlington Stores | AIB Acquisition vs. Kontoor Brands | AIB Acquisition vs. Canlan Ice Sports |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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