Correlation Between Centurion Acquisition and Black Hawk
Can any of the company-specific risk be diversified away by investing in both Centurion Acquisition and Black Hawk 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 Centurion Acquisition and Black Hawk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Centurion Acquisition Corp and Black Hawk Acquisition, you can compare the effects of market volatilities on Centurion Acquisition and Black Hawk 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 Centurion Acquisition with a short position of Black Hawk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Centurion Acquisition and Black Hawk.
Diversification Opportunities for Centurion Acquisition and Black Hawk
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Centurion and Black is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Centurion Acquisition Corp and Black Hawk Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Black Hawk Acquisition and Centurion 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 Centurion Acquisition Corp are associated (or correlated) with Black Hawk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Black Hawk Acquisition has no effect on the direction of Centurion Acquisition i.e., Centurion Acquisition and Black Hawk go up and down completely randomly.
Pair Corralation between Centurion Acquisition and Black Hawk
Considering the 90-day investment horizon Centurion Acquisition Corp is expected to generate 0.08 times more return on investment than Black Hawk. However, Centurion Acquisition Corp is 12.24 times less risky than Black Hawk. It trades about 0.08 of its potential returns per unit of risk. Black Hawk Acquisition is currently generating about 0.0 per unit of risk. If you would invest 1,005 in Centurion Acquisition Corp on August 31, 2024 and sell it today you would earn a total of 2.00 from holding Centurion Acquisition Corp or generate 0.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Centurion Acquisition Corp vs. Black Hawk Acquisition
Performance |
| Timeline |
| Centurion Acquisition |
| Black Hawk Acquisition |
Centurion Acquisition and Black Hawk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Centurion Acquisition and Black Hawk
The main advantage of trading using opposite Centurion Acquisition and Black Hawk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Centurion Acquisition position performs unexpectedly, Black Hawk 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 Black Hawk will offset losses from the drop in Black Hawk's long position.| Centurion Acquisition vs. Braskem SA Class | Centurion Acquisition vs. Grupo Televisa SAB | Centurion Acquisition vs. NL Industries | Centurion Acquisition vs. BCE Inc |
| Black Hawk vs. Playtika Holding Corp | Black Hawk vs. ScanSource | Black Hawk vs. Uber Technologies | Black Hawk vs. Senmiao Technology |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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