Correlation Between Churchill Capital and Noble Rock
Can any of the company-specific risk be diversified away by investing in both Churchill Capital and Noble Rock 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 Noble Rock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Churchill Capital V and Noble Rock Acquisition, you can compare the effects of market volatilities on Churchill Capital and Noble Rock 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 Noble Rock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Churchill Capital and Noble Rock.
Diversification Opportunities for Churchill Capital and Noble Rock
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Churchill and Noble is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Churchill Capital V and Noble Rock Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Noble Rock Acquisition 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 V are associated (or correlated) with Noble Rock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Noble Rock Acquisition has no effect on the direction of Churchill Capital i.e., Churchill Capital and Noble Rock go up and down completely randomly.
Pair Corralation between Churchill Capital and Noble Rock
If you would invest 1,062 in Noble Rock Acquisition on September 5, 2024 and sell it today you would earn a total of 0.00 from holding Noble Rock Acquisition or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Churchill Capital V vs. Noble Rock Acquisition
Performance |
| Timeline |
| Churchill Capital |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Noble Rock Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Churchill Capital and Noble Rock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Churchill Capital and Noble Rock
The main advantage of trading using opposite Churchill Capital and Noble Rock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Churchill Capital position performs unexpectedly, Noble Rock 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 Noble Rock will offset losses from the drop in Noble Rock's long position.The idea behind Churchill Capital V and Noble Rock Acquisition 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.| Noble Rock vs. Embrace Change Acquisition | Noble Rock vs. Bannix Acquisition Corp | Noble Rock vs. Global Blockchain Acquisition |
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 Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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