Correlation Between Bayview Acquisition and AA Mission
Can any of the company-specific risk be diversified away by investing in both Bayview Acquisition and AA Mission 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 Bayview Acquisition and AA Mission into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bayview Acquisition Corp and AA Mission Acquisition, you can compare the effects of market volatilities on Bayview Acquisition and AA Mission 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 Bayview Acquisition with a short position of AA Mission. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bayview Acquisition and AA Mission.
Diversification Opportunities for Bayview Acquisition and AA Mission
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bayview and AAM is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Bayview Acquisition Corp and AA Mission Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AA Mission Acquisition and Bayview 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 Bayview Acquisition Corp are associated (or correlated) with AA Mission. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AA Mission Acquisition has no effect on the direction of Bayview Acquisition i.e., Bayview Acquisition and AA Mission go up and down completely randomly.
Pair Corralation between Bayview Acquisition and AA Mission
Assuming the 90 days horizon Bayview Acquisition Corp is expected to generate 11.91 times more return on investment than AA Mission. However, Bayview Acquisition is 11.91 times more volatile than AA Mission Acquisition. It trades about 0.04 of its potential returns per unit of risk. AA Mission Acquisition is currently generating about 0.18 per unit of risk. If you would invest 1,000.00 in Bayview Acquisition Corp on August 27, 2024 and sell it today you would earn a total of 80.00 from holding Bayview Acquisition Corp or generate 8.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 21.34% |
| Values | Daily Returns |
Bayview Acquisition Corp vs. AA Mission Acquisition
Performance |
| Timeline |
| Bayview Acquisition Corp |
| AA Mission Acquisition |
Bayview Acquisition and AA Mission Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bayview Acquisition and AA Mission
The main advantage of trading using opposite Bayview Acquisition and AA Mission positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bayview Acquisition position performs unexpectedly, AA Mission 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 AA Mission will offset losses from the drop in AA Mission's long position.| Bayview Acquisition vs. Newpark Resources | Bayview Acquisition vs. Primoris Services | Bayview Acquisition vs. CECO Environmental Corp | Bayview Acquisition vs. Qualys Inc |
| AA Mission vs. dMY Squared Technology | AA Mission vs. Vine Hill Capital | AA Mission vs. DP Cap Acquisition | AA Mission vs. PowerUp 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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