Correlation Between ClimateRock and L Catterton
Can any of the company-specific risk be diversified away by investing in both ClimateRock and L Catterton 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 L Catterton 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 L Catterton Asia, you can compare the effects of market volatilities on ClimateRock and L Catterton 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 L Catterton. Check out your portfolio center. Please also check ongoing floating volatility patterns of ClimateRock and L Catterton.
Diversification Opportunities for ClimateRock and L Catterton
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between ClimateRock and LCAA is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding ClimateRock Class A and L Catterton Asia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on L Catterton Asia 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 L Catterton. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of L Catterton Asia has no effect on the direction of ClimateRock i.e., ClimateRock and L Catterton go up and down completely randomly.
Pair Corralation between ClimateRock and L Catterton
If you would invest 1,179 in ClimateRock Class A on November 2, 2024 and sell it today you would earn a total of 8.00 from holding ClimateRock Class A or generate 0.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 5.26% |
| Values | Daily Returns |
ClimateRock Class A vs. L Catterton Asia
Performance |
| Timeline |
| ClimateRock Class |
| L Catterton Asia |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
ClimateRock and L Catterton Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ClimateRock and L Catterton
The main advantage of trading using opposite ClimateRock and L Catterton positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ClimateRock position performs unexpectedly, L Catterton 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 L Catterton will offset losses from the drop in L Catterton'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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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