Correlation Between Breeze Holdings and Malacca Straits
Can any of the company-specific risk be diversified away by investing in both Breeze Holdings and Malacca Straits 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 Breeze Holdings and Malacca Straits into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Breeze Holdings Acquisition and Malacca Straits Acquisition, you can compare the effects of market volatilities on Breeze Holdings and Malacca Straits 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 Breeze Holdings with a short position of Malacca Straits. Check out your portfolio center. Please also check ongoing floating volatility patterns of Breeze Holdings and Malacca Straits.
Diversification Opportunities for Breeze Holdings and Malacca Straits
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Breeze and Malacca is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Breeze Holdings Acquisition and Malacca Straits Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Malacca Straits Acqu and Breeze Holdings 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 Breeze Holdings Acquisition are associated (or correlated) with Malacca Straits. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Malacca Straits Acqu has no effect on the direction of Breeze Holdings i.e., Breeze Holdings and Malacca Straits go up and down completely randomly.
Pair Corralation between Breeze Holdings and Malacca Straits
If you would invest 1,053 in Malacca Straits Acquisition on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Malacca Straits Acquisition or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Breeze Holdings Acquisition vs. Malacca Straits Acquisition
Performance |
| Timeline |
| Breeze Holdings Acqu |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Malacca Straits Acqu |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Breeze Holdings and Malacca Straits Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Breeze Holdings and Malacca Straits
The main advantage of trading using opposite Breeze Holdings and Malacca Straits positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Breeze Holdings position performs unexpectedly, Malacca Straits 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 Malacca Straits will offset losses from the drop in Malacca Straits' long position.| Breeze Holdings vs. Qomolangma Acquisition Corp | Breeze Holdings vs. Futuretech II Acquisition | Breeze Holdings vs. Patria Latin American |
| Malacca Straits vs. Hudson Acquisition I | Malacca Straits vs. Alpha One | Malacca Straits vs. Manaris Corp | Malacca Straits vs. Marblegate 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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