Correlation Between Cascadia Acquisition and Concord Acquisition
Can any of the company-specific risk be diversified away by investing in both Cascadia Acquisition and Concord 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 Concord 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 Concord Acquisition Corp, you can compare the effects of market volatilities on Cascadia Acquisition and Concord 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 Concord Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cascadia Acquisition and Concord Acquisition.
Diversification Opportunities for Cascadia Acquisition and Concord Acquisition
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cascadia and Concord is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Cascadia Acquisition Corp and Concord Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Concord 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 Concord Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Concord Acquisition Corp has no effect on the direction of Cascadia Acquisition i.e., Cascadia Acquisition and Concord Acquisition go up and down completely randomly.
Pair Corralation between Cascadia Acquisition and Concord Acquisition
If you would invest 1,040 in Concord Acquisition Corp on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Concord 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. Concord Acquisition Corp
Performance |
| Timeline |
| Cascadia Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Concord Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Cascadia Acquisition and Concord Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cascadia Acquisition and Concord Acquisition
The main advantage of trading using opposite Cascadia Acquisition and Concord Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cascadia Acquisition position performs unexpectedly, Concord 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 Concord Acquisition will offset losses from the drop in Concord Acquisition's long position.The idea behind Cascadia Acquisition Corp and Concord 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.| Concord Acquisition vs. Thunder Bridge Capital | Concord Acquisition vs. Welsbach Technology Metals | Concord Acquisition vs. DP Cap Acquisition | Concord Acquisition vs. Hudson Acquisition I |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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