Correlation Between Broad Capital and Hawks Acquisition
Can any of the company-specific risk be diversified away by investing in both Broad Capital and Hawks 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 Broad Capital and Hawks Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Broad Capital Acquisition and Hawks Acquisition Corp, you can compare the effects of market volatilities on Broad Capital and Hawks 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 Broad Capital with a short position of Hawks Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Broad Capital and Hawks Acquisition.
Diversification Opportunities for Broad Capital and Hawks Acquisition
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Broad and Hawks is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Broad Capital Acquisition and Hawks Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hawks Acquisition Corp and Broad Capital 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 Broad Capital Acquisition are associated (or correlated) with Hawks Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hawks Acquisition Corp has no effect on the direction of Broad Capital i.e., Broad Capital and Hawks Acquisition go up and down completely randomly.
Pair Corralation between Broad Capital and Hawks Acquisition
Assuming the 90 days horizon Broad Capital Acquisition is expected to generate 2.3 times more return on investment than Hawks Acquisition. However, Broad Capital is 2.3 times more volatile than Hawks Acquisition Corp. It trades about 0.04 of its potential returns per unit of risk. Hawks Acquisition Corp is currently generating about 0.08 per unit of risk. If you would invest 1,014 in Broad Capital Acquisition on August 25, 2024 and sell it today you would earn a total of 117.00 from holding Broad Capital Acquisition or generate 11.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 30.24% |
| Values | Daily Returns |
Broad Capital Acquisition vs. Hawks Acquisition Corp
Performance |
| Timeline |
| Broad Capital Acquisition |
| Hawks Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Broad Capital and Hawks Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Broad Capital and Hawks Acquisition
The main advantage of trading using opposite Broad Capital and Hawks Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Broad Capital position performs unexpectedly, Hawks 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 Hawks Acquisition will offset losses from the drop in Hawks Acquisition's long position.| Broad Capital vs. PowerUp Acquisition Corp | Broad Capital vs. Aurora Innovation | Broad Capital vs. HUMANA INC | Broad Capital vs. Aquagold International |
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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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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