Correlation Between Catcha Investment and GSR II
Can any of the company-specific risk be diversified away by investing in both Catcha Investment and GSR II 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 Catcha Investment and GSR II into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Catcha Investment Corp and GSR II Meteora, you can compare the effects of market volatilities on Catcha Investment and GSR II 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 Catcha Investment with a short position of GSR II. Check out your portfolio center. Please also check ongoing floating volatility patterns of Catcha Investment and GSR II.
Diversification Opportunities for Catcha Investment and GSR II
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Catcha and GSR is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Catcha Investment Corp and GSR II Meteora in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GSR II Meteora and Catcha Investment 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 Catcha Investment Corp are associated (or correlated) with GSR II. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GSR II Meteora has no effect on the direction of Catcha Investment i.e., Catcha Investment and GSR II go up and down completely randomly.
Pair Corralation between Catcha Investment and GSR II
If you would invest 388.00 in GSR II Meteora on August 23, 2024 and sell it today you would earn a total of 0.00 from holding GSR II Meteora 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 |
Catcha Investment Corp vs. GSR II Meteora
Performance |
| Timeline |
| Catcha Investment Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| GSR II Meteora |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Catcha Investment and GSR II Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Catcha Investment and GSR II
The main advantage of trading using opposite Catcha Investment and GSR II positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Catcha Investment position performs unexpectedly, GSR II 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 GSR II will offset losses from the drop in GSR II's long position.| Catcha Investment vs. DP Cap Acquisition | Catcha Investment vs. A SPAC II | Catcha Investment vs. Athena Technology Acquisition |
| GSR II vs. U Haul Holding | GSR II vs. First Ship Lease | GSR II vs. Willscot Mobile Mini | GSR II vs. Compania Cervecerias Unidas |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |