Correlation Between Concord Acquisition and Iconic Sports
Can any of the company-specific risk be diversified away by investing in both Concord Acquisition and Iconic Sports 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 Concord Acquisition and Iconic Sports into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Concord Acquisition Corp and Iconic Sports Acquisition, you can compare the effects of market volatilities on Concord Acquisition and Iconic Sports 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 Concord Acquisition with a short position of Iconic Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Concord Acquisition and Iconic Sports.
Diversification Opportunities for Concord Acquisition and Iconic Sports
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Concord and Iconic is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Concord Acquisition Corp and Iconic Sports Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iconic Sports Acquisition and Concord Acquisition 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 Concord Acquisition Corp are associated (or correlated) with Iconic Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iconic Sports Acquisition has no effect on the direction of Concord Acquisition i.e., Concord Acquisition and Iconic Sports go up and down completely randomly.
Pair Corralation between Concord Acquisition and Iconic Sports
Given the investment horizon of 90 days Concord Acquisition Corp is expected to generate 1058.84 times more return on investment than Iconic Sports. However, Concord Acquisition is 1058.84 times more volatile than Iconic Sports Acquisition. It trades about 0.07 of its potential returns per unit of risk. Iconic Sports Acquisition is currently generating about 0.29 per unit of risk. If you would invest 989.00 in Concord Acquisition Corp on August 30, 2024 and sell it today you would lose (989.00) from holding Concord Acquisition Corp or give up 100.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 38.02% |
| Values | Daily Returns |
Concord Acquisition Corp vs. Iconic Sports Acquisition
Performance |
| Timeline |
| Concord Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Iconic Sports Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Concord Acquisition and Iconic Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Concord Acquisition and Iconic Sports
The main advantage of trading using opposite Concord Acquisition and Iconic Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Concord Acquisition position performs unexpectedly, Iconic Sports 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 Iconic Sports will offset losses from the drop in Iconic Sports' long position.The idea behind Concord Acquisition Corp and Iconic Sports Acquisition 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.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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Stocks Directory Find actively traded stocks across global markets |