Correlation Between ClimateRock and ESGEN Acquisition
Can any of the company-specific risk be diversified away by investing in both ClimateRock and ESGEN Acquisition 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 ESGEN Acquisition 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 ESGEN Acquisition Corp, you can compare the effects of market volatilities on ClimateRock and ESGEN Acquisition 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 ESGEN Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of ClimateRock and ESGEN Acquisition.
Diversification Opportunities for ClimateRock and ESGEN Acquisition
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ClimateRock and ESGEN is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding ClimateRock Class A and ESGEN Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ESGEN Acquisition Corp 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 ESGEN Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ESGEN Acquisition Corp has no effect on the direction of ClimateRock i.e., ClimateRock and ESGEN Acquisition go up and down completely randomly.
Pair Corralation between ClimateRock and ESGEN Acquisition
If you would invest 1,160 in ClimateRock Class A on August 29, 2024 and sell it today you would earn a total of 5.00 from holding ClimateRock Class A or generate 0.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.55% |
| Values | Daily Returns |
ClimateRock Class A vs. ESGEN Acquisition Corp
Performance |
| Timeline |
| ClimateRock Class |
| ESGEN Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
ClimateRock and ESGEN Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ClimateRock and ESGEN Acquisition
The main advantage of trading using opposite ClimateRock and ESGEN Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ClimateRock position performs unexpectedly, ESGEN Acquisition 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 ESGEN Acquisition will offset losses from the drop in ESGEN Acquisition's long position.| ClimateRock vs. Patria Latin American | ClimateRock vs. ABIVAX Socit Anonyme | ClimateRock vs. Pinnacle Sherman Multi Strategy | ClimateRock vs. Morningstar Unconstrained Allocation |
| ESGEN Acquisition vs. Insight Acquisition Corp | ESGEN Acquisition vs. ClimateRock Class A | ESGEN Acquisition vs. Nova Vision Acquisition | ESGEN Acquisition vs. PowerUp Acquisition 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |