Correlation Between ClimateRock and OCA Acquisition
Can any of the company-specific risk be diversified away by investing in both ClimateRock and OCA 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 OCA 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 OCA Acquisition Corp, you can compare the effects of market volatilities on ClimateRock and OCA 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 OCA Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of ClimateRock and OCA Acquisition.
Diversification Opportunities for ClimateRock and OCA Acquisition
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ClimateRock and OCA is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding ClimateRock Class A and OCA Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OCA 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 OCA Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OCA Acquisition Corp has no effect on the direction of ClimateRock i.e., ClimateRock and OCA Acquisition go up and down completely randomly.
Pair Corralation between ClimateRock and OCA Acquisition
If you would invest 1,160 in ClimateRock Class A on August 24, 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. OCA Acquisition Corp
Performance |
| Timeline |
| ClimateRock Class |
| OCA Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
ClimateRock and OCA Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ClimateRock and OCA Acquisition
The main advantage of trading using opposite ClimateRock and OCA Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ClimateRock position performs unexpectedly, OCA 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 OCA Acquisition will offset losses from the drop in OCA Acquisition's long position.| ClimateRock vs. AlphaVest Acquisition Corp | ClimateRock vs. Golden Star Acquisition | ClimateRock vs. Alpha One | ClimateRock vs. Manaris Corp |
| OCA Acquisition vs. DP Cap Acquisition | OCA Acquisition vs. A SPAC II | OCA Acquisition vs. Athena Technology Acquisition | OCA Acquisition vs. Welsbach Technology Metals |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |