Correlation Between ClimateRock and Acri Capital
Can any of the company-specific risk be diversified away by investing in both ClimateRock and Acri Capital 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 ClimateRock and Acri Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ClimateRock Class A and Acri Capital Acquisition, you can compare the effects of market volatilities on ClimateRock and Acri Capital 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 ClimateRock with a short position of Acri Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of ClimateRock and Acri Capital.
Diversification Opportunities for ClimateRock and Acri Capital
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ClimateRock and Acri is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding ClimateRock Class A and Acri Capital Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acri Capital Acquisition and ClimateRock 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 ClimateRock Class A are associated (or correlated) with Acri Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acri Capital Acquisition has no effect on the direction of ClimateRock i.e., ClimateRock and Acri Capital go up and down completely randomly.
Pair Corralation between ClimateRock and Acri Capital
Given the investment horizon of 90 days ClimateRock is expected to generate 1.13 times less return on investment than Acri Capital. But when comparing it to its historical volatility, ClimateRock Class A is 6.47 times less risky than Acri Capital. It trades about 0.07 of its potential returns per unit of risk. Acri Capital Acquisition is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,080 in Acri Capital Acquisition on August 26, 2024 and sell it today you would earn a total of 10.00 from holding Acri Capital Acquisition or generate 0.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 87.99% |
| Values | Daily Returns |
ClimateRock Class A vs. Acri Capital Acquisition
Performance |
| Timeline |
| ClimateRock Class |
| Acri Capital Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
ClimateRock and Acri Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ClimateRock and Acri Capital
The main advantage of trading using opposite ClimateRock and Acri Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ClimateRock position performs unexpectedly, Acri Capital 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 Acri Capital will offset losses from the drop in Acri Capital's long position.| ClimateRock vs. AlphaVest Acquisition Corp | ClimateRock vs. Golden Star Acquisition | ClimateRock vs. Alpha One | ClimateRock vs. Manaris Corp |
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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