Correlation Between StoneBridge Acquisition and Corner Growth
Can any of the company-specific risk be diversified away by investing in both StoneBridge Acquisition and Corner Growth 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 StoneBridge Acquisition and Corner Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between StoneBridge Acquisition and Corner Growth Acquisition, you can compare the effects of market volatilities on StoneBridge Acquisition and Corner Growth 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 StoneBridge Acquisition with a short position of Corner Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of StoneBridge Acquisition and Corner Growth.
Diversification Opportunities for StoneBridge Acquisition and Corner Growth
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between StoneBridge and Corner is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding StoneBridge Acquisition and Corner Growth Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corner Growth Acquisition and StoneBridge 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 StoneBridge Acquisition are associated (or correlated) with Corner Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corner Growth Acquisition has no effect on the direction of StoneBridge Acquisition i.e., StoneBridge Acquisition and Corner Growth go up and down completely randomly.
Pair Corralation between StoneBridge Acquisition and Corner Growth
If you would invest 5.00 in Corner Growth Acquisition on August 26, 2024 and sell it today you would earn a total of 16.00 from holding Corner Growth Acquisition or generate 320.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.7% |
| Values | Daily Returns |
StoneBridge Acquisition vs. Corner Growth Acquisition
Performance |
| Timeline |
| StoneBridge Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Corner Growth Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
StoneBridge Acquisition and Corner Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with StoneBridge Acquisition and Corner Growth
The main advantage of trading using opposite StoneBridge Acquisition and Corner Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if StoneBridge Acquisition position performs unexpectedly, Corner Growth 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 Corner Growth will offset losses from the drop in Corner Growth's long position.The idea behind StoneBridge Acquisition and Corner Growth Acquisition 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.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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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