Correlation Between Black Spade and IB Acquisition
Can any of the company-specific risk be diversified away by investing in both Black Spade and IB 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 Black Spade and IB Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Black Spade Acquisition and IB Acquisition Corp, you can compare the effects of market volatilities on Black Spade and IB 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 Black Spade with a short position of IB Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Black Spade and IB Acquisition.
Diversification Opportunities for Black Spade and IB Acquisition
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Black and IBACR is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Black Spade Acquisition and IB Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IB Acquisition Corp and Black Spade 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 Black Spade Acquisition are associated (or correlated) with IB Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IB Acquisition Corp has no effect on the direction of Black Spade i.e., Black Spade and IB Acquisition go up and down completely randomly.
Pair Corralation between Black Spade and IB Acquisition
Assuming the 90 days horizon Black Spade is expected to generate 37.3 times less return on investment than IB Acquisition. But when comparing it to its historical volatility, Black Spade Acquisition is 61.34 times less risky than IB Acquisition. It trades about 0.05 of its potential returns per unit of risk. IB Acquisition Corp is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 7.00 in IB Acquisition Corp on November 2, 2024 and sell it today you would lose (1.19) from holding IB Acquisition Corp or give up 17.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 85.0% |
| Values | Daily Returns |
Black Spade Acquisition vs. IB Acquisition Corp
Performance |
| Timeline |
| Black Spade Acquisition |
| IB Acquisition Corp |
Black Spade and IB Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Black Spade and IB Acquisition
The main advantage of trading using opposite Black Spade and IB Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Black Spade position performs unexpectedly, IB 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 IB Acquisition will offset losses from the drop in IB Acquisition's long position.| Black Spade vs. dMY Squared Technology | Black Spade vs. YHN Acquisition I | Black Spade vs. YHN Acquisition I | Black Spade vs. CO2 Energy Transition |
| IB Acquisition vs. flyExclusive, | IB Acquisition vs. Elmos Semiconductor SE | IB Acquisition vs. Vishay Intertechnology | IB Acquisition vs. Taiwan Semiconductor Manufacturing |
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.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |