Correlation Between Cascadia Acquisition and Oxus Acquisition
Can any of the company-specific risk be diversified away by investing in both Cascadia Acquisition and Oxus 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 Cascadia Acquisition and Oxus Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cascadia Acquisition Corp and Oxus Acquisition Corp, you can compare the effects of market volatilities on Cascadia Acquisition and Oxus 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 Cascadia Acquisition with a short position of Oxus Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cascadia Acquisition and Oxus Acquisition.
Diversification Opportunities for Cascadia Acquisition and Oxus Acquisition
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cascadia and Oxus is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Cascadia Acquisition Corp and Oxus Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oxus Acquisition Corp and Cascadia Acquisition 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 Cascadia Acquisition Corp are associated (or correlated) with Oxus Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oxus Acquisition Corp has no effect on the direction of Cascadia Acquisition i.e., Cascadia Acquisition and Oxus Acquisition go up and down completely randomly.
Pair Corralation between Cascadia Acquisition and Oxus Acquisition
If you would invest 1,082 in Oxus Acquisition Corp on September 14, 2024 and sell it today you would earn a total of 0.00 from holding Oxus Acquisition Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cascadia Acquisition Corp vs. Oxus Acquisition Corp
Performance |
| Timeline |
| Cascadia Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Oxus Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Cascadia Acquisition and Oxus Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cascadia Acquisition and Oxus Acquisition
The main advantage of trading using opposite Cascadia Acquisition and Oxus Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cascadia Acquisition position performs unexpectedly, Oxus 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 Oxus Acquisition will offset losses from the drop in Oxus Acquisition's long position.The idea behind Cascadia Acquisition Corp and Oxus Acquisition Corp 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |