Correlation Between Bleuacacia and Crescera Capital
Can any of the company-specific risk be diversified away by investing in both Bleuacacia and Crescera Capital 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 Bleuacacia and Crescera Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bleuacacia Ltd Warrants and Crescera Capital Acquisition, you can compare the effects of market volatilities on Bleuacacia and Crescera Capital 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 Bleuacacia with a short position of Crescera Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bleuacacia and Crescera Capital.
Diversification Opportunities for Bleuacacia and Crescera Capital
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bleuacacia and Crescera is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bleuacacia Ltd Warrants and Crescera Capital Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crescera Capital Acq and Bleuacacia 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 Bleuacacia Ltd Warrants are associated (or correlated) with Crescera Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crescera Capital Acq has no effect on the direction of Bleuacacia i.e., Bleuacacia and Crescera Capital go up and down completely randomly.
Pair Corralation between Bleuacacia and Crescera Capital
Assuming the 90 days horizon Bleuacacia Ltd Warrants is expected to generate 4.93 times more return on investment than Crescera Capital. However, Bleuacacia is 4.93 times more volatile than Crescera Capital Acquisition. It trades about 0.16 of its potential returns per unit of risk. Crescera Capital Acquisition is currently generating about 0.13 per unit of risk. If you would invest 4.90 in Bleuacacia Ltd Warrants on October 25, 2024 and sell it today you would lose (3.93) from holding Bleuacacia Ltd Warrants or give up 80.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 25.82% |
| Values | Daily Returns |
Bleuacacia Ltd Warrants vs. Crescera Capital Acquisition
Performance |
| Timeline |
| Bleuacacia Warrants |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
| Crescera Capital Acq |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bleuacacia and Crescera Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bleuacacia and Crescera Capital
The main advantage of trading using opposite Bleuacacia and Crescera Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bleuacacia position performs unexpectedly, Crescera Capital 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 Crescera Capital will offset losses from the drop in Crescera Capital's long position.The idea behind Bleuacacia Ltd Warrants and Crescera Capital 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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