Correlation Between Aurora Acquisition and Atlantic Coastal
Can any of the company-specific risk be diversified away by investing in both Aurora Acquisition and Atlantic Coastal 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 Aurora Acquisition and Atlantic Coastal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aurora Acquisition Corp and Atlantic Coastal Acquisition, you can compare the effects of market volatilities on Aurora Acquisition and Atlantic Coastal 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 Aurora Acquisition with a short position of Atlantic Coastal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurora Acquisition and Atlantic Coastal.
Diversification Opportunities for Aurora Acquisition and Atlantic Coastal
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aurora and Atlantic is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Aurora Acquisition Corp and Atlantic Coastal Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlantic Coastal Acq and Aurora 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 Aurora Acquisition Corp are associated (or correlated) with Atlantic Coastal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlantic Coastal Acq has no effect on the direction of Aurora Acquisition i.e., Aurora Acquisition and Atlantic Coastal go up and down completely randomly.
Pair Corralation between Aurora Acquisition and Atlantic Coastal
If you would invest 1,031 in Atlantic Coastal Acquisition on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Atlantic Coastal Acquisition or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aurora Acquisition Corp vs. Atlantic Coastal Acquisition
Performance |
| Timeline |
| Aurora Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Atlantic Coastal Acq |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Aurora Acquisition and Atlantic Coastal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aurora Acquisition and Atlantic Coastal
The main advantage of trading using opposite Aurora Acquisition and Atlantic Coastal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurora Acquisition position performs unexpectedly, Atlantic Coastal 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 Atlantic Coastal will offset losses from the drop in Atlantic Coastal's long position.| Aurora Acquisition vs. Cars Inc | Aurora Acquisition vs. BorgWarner | Aurora Acquisition vs. East Africa Metals | Aurora Acquisition vs. Agnico Eagle Mines |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |