Correlation Between ClimateRock and TKB Critical
Can any of the company-specific risk be diversified away by investing in both ClimateRock and TKB Critical 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 TKB Critical 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 TKB Critical Technologies, you can compare the effects of market volatilities on ClimateRock and TKB Critical 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 TKB Critical. Check out your portfolio center. Please also check ongoing floating volatility patterns of ClimateRock and TKB Critical.
Diversification Opportunities for ClimateRock and TKB Critical
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between ClimateRock and TKB is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding ClimateRock Class A and TKB Critical Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TKB Critical Technologies 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 TKB Critical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TKB Critical Technologies has no effect on the direction of ClimateRock i.e., ClimateRock and TKB Critical go up and down completely randomly.
Pair Corralation between ClimateRock and TKB Critical
If you would invest 1,160 in ClimateRock Class A on August 28, 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 Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
ClimateRock Class A vs. TKB Critical Technologies
Performance |
| Timeline |
| ClimateRock Class |
| TKB Critical Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
ClimateRock and TKB Critical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ClimateRock and TKB Critical
The main advantage of trading using opposite ClimateRock and TKB Critical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ClimateRock position performs unexpectedly, TKB Critical 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 TKB Critical will offset losses from the drop in TKB Critical's long position.| ClimateRock vs. AlphaVest Acquisition Corp | ClimateRock vs. Golden Star Acquisition | ClimateRock vs. Alpha One | ClimateRock vs. Manaris Corp |
| TKB Critical vs. ClimateRock Class A | TKB Critical vs. AlphaVest Acquisition Corp | TKB Critical vs. Golden Star Acquisition | TKB Critical vs. Alpha One |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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