Correlation Between Alpha One and Malacca Straits
Can any of the company-specific risk be diversified away by investing in both Alpha One and Malacca Straits 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 Alpha One and Malacca Straits into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alpha One and Malacca Straits Acquisition, you can compare the effects of market volatilities on Alpha One and Malacca Straits 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 Alpha One with a short position of Malacca Straits. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alpha One and Malacca Straits.
Diversification Opportunities for Alpha One and Malacca Straits
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Alpha and Malacca is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Alpha One and Malacca Straits Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Malacca Straits Acqu and Alpha One 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 Alpha One are associated (or correlated) with Malacca Straits. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Malacca Straits Acqu has no effect on the direction of Alpha One i.e., Alpha One and Malacca Straits go up and down completely randomly.
Pair Corralation between Alpha One and Malacca Straits
If you would invest 229.00 in Alpha One on September 1, 2024 and sell it today you would earn a total of 9.00 from holding Alpha One or generate 3.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.79% |
| Values | Daily Returns |
Alpha One vs. Malacca Straits Acquisition
Performance |
| Timeline |
| Alpha One |
| Malacca Straits Acqu |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Alpha One and Malacca Straits Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alpha One and Malacca Straits
The main advantage of trading using opposite Alpha One and Malacca Straits positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alpha One position performs unexpectedly, Malacca Straits 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 Malacca Straits will offset losses from the drop in Malacca Straits' long position.| Alpha One vs. MGIC Investment Corp | Alpha One vs. WEC Energy Group | Alpha One vs. Sun Life Financial | Alpha One vs. Antero Midstream Partners |
| Malacca Straits vs. Hudson Acquisition I | Malacca Straits vs. Alpha One | Malacca Straits vs. Manaris Corp | Malacca Straits vs. Marblegate Acquisition Corp |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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