Correlation Between ClimateRock and CNDB Old
Can any of the company-specific risk be diversified away by investing in both ClimateRock and CNDB Old 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 CNDB Old 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 CNDB Old, you can compare the effects of market volatilities on ClimateRock and CNDB Old 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 CNDB Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of ClimateRock and CNDB Old.
Diversification Opportunities for ClimateRock and CNDB Old
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ClimateRock and CNDB is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ClimateRock Class A and CNDB Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CNDB Old 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 CNDB Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CNDB Old has no effect on the direction of ClimateRock i.e., ClimateRock and CNDB Old go up and down completely randomly.
Pair Corralation between ClimateRock and CNDB Old
If you would invest 1,034 in ClimateRock Class A on December 2, 2024 and sell it today you would earn a total of 152.00 from holding ClimateRock Class A or generate 14.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
ClimateRock Class A vs. CNDB Old
Performance |
| Timeline |
| ClimateRock Class |
| CNDB Old |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
ClimateRock and CNDB Old Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ClimateRock and CNDB Old
The main advantage of trading using opposite ClimateRock and CNDB Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ClimateRock position performs unexpectedly, CNDB Old 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 CNDB Old will offset losses from the drop in CNDB Old's long position.The idea behind ClimateRock Class A and CNDB Old 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.| CNDB Old vs. Marblegate Acquisition Corp | ||
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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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