Correlation Between Aldel Financial and Global Partner
Can any of the company-specific risk be diversified away by investing in both Aldel Financial and Global Partner 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 Aldel Financial and Global Partner into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aldel Financial II and Global Partner Acq, you can compare the effects of market volatilities on Aldel Financial and Global Partner 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 Aldel Financial with a short position of Global Partner. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aldel Financial and Global Partner.
Diversification Opportunities for Aldel Financial and Global Partner
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aldel and Global is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Aldel Financial II and Global Partner Acq in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Partner Acq and Aldel Financial 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 Aldel Financial II are associated (or correlated) with Global Partner. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Partner Acq has no effect on the direction of Aldel Financial i.e., Aldel Financial and Global Partner go up and down completely randomly.
Pair Corralation between Aldel Financial and Global Partner
If you would invest 999.00 in Aldel Financial II on September 13, 2024 and sell it today you would earn a total of 2.00 from holding Aldel Financial II or generate 0.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Aldel Financial II vs. Global Partner Acq
Performance |
| Timeline |
| Aldel Financial II |
| Global Partner Acq |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Aldel Financial and Global Partner Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aldel Financial and Global Partner
The main advantage of trading using opposite Aldel Financial and Global Partner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aldel Financial position performs unexpectedly, Global Partner 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 Global Partner will offset losses from the drop in Global Partner's long position.| Aldel Financial vs. Distoken Acquisition | Aldel Financial vs. dMY Squared Technology | Aldel Financial vs. YHN Acquisition I | Aldel Financial vs. YHN Acquisition I |
| Global Partner vs. Simon Property Group | Global Partner vs. The Gap, | Global Partner vs. Citi Trends | Global Partner vs. Burlington Stores |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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