Correlation Between Blue Whale and Israel Acquisitions
Can any of the company-specific risk be diversified away by investing in both Blue Whale and Israel Acquisitions 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 Blue Whale and Israel Acquisitions into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blue Whale Acquisition and Israel Acquisitions Corp, you can compare the effects of market volatilities on Blue Whale and Israel Acquisitions 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 Blue Whale with a short position of Israel Acquisitions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blue Whale and Israel Acquisitions.
Diversification Opportunities for Blue Whale and Israel Acquisitions
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Blue and Israel is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Blue Whale Acquisition and Israel Acquisitions Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Israel Acquisitions Corp and Blue Whale 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 Blue Whale Acquisition are associated (or correlated) with Israel Acquisitions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Israel Acquisitions Corp has no effect on the direction of Blue Whale i.e., Blue Whale and Israel Acquisitions go up and down completely randomly.
Pair Corralation between Blue Whale and Israel Acquisitions
If you would invest 1,069 in Israel Acquisitions Corp on September 12, 2024 and sell it today you would earn a total of 65.00 from holding Israel Acquisitions Corp or generate 6.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 0.4% |
| Values | Daily Returns |
Blue Whale Acquisition vs. Israel Acquisitions Corp
Performance |
| Timeline |
| Blue Whale Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Israel Acquisitions Corp |
Blue Whale and Israel Acquisitions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blue Whale and Israel Acquisitions
The main advantage of trading using opposite Blue Whale and Israel Acquisitions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blue Whale position performs unexpectedly, Israel Acquisitions 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 Israel Acquisitions will offset losses from the drop in Israel Acquisitions' long position.| Blue Whale vs. Israel Acquisitions Corp | Blue Whale vs. Welsbach Technology Metals | Blue Whale vs. Thunder Bridge Capital | Blue Whale vs. Bellevue Life Sciences |
| Israel Acquisitions vs. Consilium Acquisition I | Israel Acquisitions vs. A SPAC II | Israel Acquisitions vs. Pyrophyte 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |