Correlation Between AlphaVest Acquisition and ClimateRock
Can any of the company-specific risk be diversified away by investing in both AlphaVest Acquisition and ClimateRock 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 AlphaVest Acquisition and ClimateRock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AlphaVest Acquisition Corp and ClimateRock Class A, you can compare the effects of market volatilities on AlphaVest Acquisition and ClimateRock 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 AlphaVest Acquisition with a short position of ClimateRock. Check out your portfolio center. Please also check ongoing floating volatility patterns of AlphaVest Acquisition and ClimateRock.
Diversification Opportunities for AlphaVest Acquisition and ClimateRock
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between AlphaVest and ClimateRock is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding AlphaVest Acquisition Corp and ClimateRock Class A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ClimateRock Class and AlphaVest 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 AlphaVest Acquisition Corp are associated (or correlated) with ClimateRock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ClimateRock Class has no effect on the direction of AlphaVest Acquisition i.e., AlphaVest Acquisition and ClimateRock go up and down completely randomly.
Pair Corralation between AlphaVest Acquisition and ClimateRock
Given the investment horizon of 90 days AlphaVest Acquisition is expected to generate 2.89 times less return on investment than ClimateRock. But when comparing it to its historical volatility, AlphaVest Acquisition Corp is 1.28 times less risky than ClimateRock. It trades about 0.18 of its potential returns per unit of risk. ClimateRock Class A is currently generating about 0.41 of returns per unit of risk over similar time horizon. If you would invest 1,175 in ClimateRock Class A on October 25, 2024 and sell it today you would earn a total of 15.02 from holding ClimateRock Class A or generate 1.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
AlphaVest Acquisition Corp vs. ClimateRock Class A
Performance |
| Timeline |
| AlphaVest Acquisition |
| ClimateRock Class |
AlphaVest Acquisition and ClimateRock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AlphaVest Acquisition and ClimateRock
The main advantage of trading using opposite AlphaVest Acquisition and ClimateRock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AlphaVest Acquisition position performs unexpectedly, ClimateRock 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 ClimateRock will offset losses from the drop in ClimateRock's long position.| AlphaVest Acquisition vs. Air Transport Services | AlphaVest Acquisition vs. JetBlue Airways Corp | AlphaVest Acquisition vs. SkyWest | AlphaVest Acquisition vs. Singapore Airlines |
| ClimateRock vs. AlphaVest Acquisition Corp | ClimateRock vs. Golden Star Acquisition | ClimateRock vs. Alpha One | ClimateRock vs. Manaris 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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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