Correlation Between A SPAC and APx Acquisition
Can any of the company-specific risk be diversified away by investing in both A SPAC and APx Acquisition 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 A SPAC and APx Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between A SPAC I and APx Acquisition Corp, you can compare the effects of market volatilities on A SPAC and APx Acquisition 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 A SPAC with a short position of APx Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of A SPAC and APx Acquisition.
Diversification Opportunities for A SPAC and APx Acquisition
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between ASCAU and APx is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding A SPAC I and APx Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on APx Acquisition Corp and A SPAC 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 A SPAC I are associated (or correlated) with APx Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of APx Acquisition Corp has no effect on the direction of A SPAC i.e., A SPAC and APx Acquisition go up and down completely randomly.
Pair Corralation between A SPAC and APx Acquisition
If you would invest 1,090 in APx Acquisition Corp on August 26, 2024 and sell it today you would earn a total of 65.00 from holding APx Acquisition Corp or generate 5.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 0.42% |
| Values | Daily Returns |
A SPAC I vs. APx Acquisition Corp
Performance |
| Timeline |
| A SPAC I |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| APx Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
A SPAC and APx Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with A SPAC and APx Acquisition
The main advantage of trading using opposite A SPAC and APx Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if A SPAC position performs unexpectedly, APx Acquisition 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 APx Acquisition will offset losses from the drop in APx Acquisition's long position.The idea behind A SPAC I and APx Acquisition Corp 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.| APx Acquisition vs. Healthcare AI Acquisition | APx Acquisition vs. Blockchain Coinvestors Acquisition | APx Acquisition vs. BurTech 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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