Correlation Between Churchill Capital and Arcelormittal
Can any of the company-specific risk be diversified away by investing in both Churchill Capital and Arcelormittal 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 Churchill Capital and Arcelormittal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Churchill Capital Corp and Arcelormittal, you can compare the effects of market volatilities on Churchill Capital and Arcelormittal 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 Churchill Capital with a short position of Arcelormittal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Churchill Capital and Arcelormittal.
Diversification Opportunities for Churchill Capital and Arcelormittal
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Churchill and Arcelormittal is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Churchill Capital Corp and Arcelormittal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arcelormittal and Churchill Capital 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 Churchill Capital Corp are associated (or correlated) with Arcelormittal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arcelormittal has no effect on the direction of Churchill Capital i.e., Churchill Capital and Arcelormittal go up and down completely randomly.
Pair Corralation between Churchill Capital and Arcelormittal
Given the investment horizon of 90 days Churchill Capital Corp is expected to generate 0.07 times more return on investment than Arcelormittal. However, Churchill Capital Corp is 14.28 times less risky than Arcelormittal. It trades about 0.16 of its potential returns per unit of risk. Arcelormittal is currently generating about 0.01 per unit of risk. If you would invest 1,003 in Churchill Capital Corp on August 26, 2024 and sell it today you would earn a total of 27.00 from holding Churchill Capital Corp or generate 2.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 96.49% |
| Values | Daily Returns |
Churchill Capital Corp vs. Arcelormittal
Performance |
| Timeline |
| Churchill Capital Corp |
| Arcelormittal |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Churchill Capital and Arcelormittal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Churchill Capital and Arcelormittal
The main advantage of trading using opposite Churchill Capital and Arcelormittal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Churchill Capital position performs unexpectedly, Arcelormittal 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 Arcelormittal will offset losses from the drop in Arcelormittal's long position.| Churchill Capital vs. Voyager Acquisition Corp | Churchill Capital vs. YHN Acquisition I | Churchill Capital vs. YHN Acquisition I | Churchill Capital vs. Vine Hill Capital |
| Arcelormittal vs. Affiliated Managers Group | Arcelormittal vs. Maiden Holdings North | Arcelormittal vs. Credit Enhanced Corts | Arcelormittal vs. Affiliated Managers Group, |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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