Correlation Between Concord Acquisition and ClimateRock
Can any of the company-specific risk be diversified away by investing in both Concord Acquisition and ClimateRock 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 ClimateRock 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 ClimateRock Class A, you can compare the effects of market volatilities on Concord Acquisition and ClimateRock 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 ClimateRock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Concord Acquisition and ClimateRock.
Diversification Opportunities for Concord Acquisition and ClimateRock
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Concord and ClimateRock is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Concord Acquisition Corp and ClimateRock Class A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ClimateRock Class 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 ClimateRock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ClimateRock Class has no effect on the direction of Concord Acquisition i.e., Concord Acquisition and ClimateRock go up and down completely randomly.
Pair Corralation between Concord Acquisition and ClimateRock
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 Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Concord Acquisition Corp vs. ClimateRock Class A
Performance |
| Timeline |
| Concord Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| ClimateRock Class |
Concord Acquisition and ClimateRock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Concord Acquisition and ClimateRock
The main advantage of trading using opposite Concord Acquisition and ClimateRock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Concord Acquisition position performs unexpectedly, ClimateRock 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 ClimateRock will offset losses from the drop in ClimateRock's long position.| Concord Acquisition vs. Thunder Bridge Capital | Concord Acquisition vs. Welsbach Technology Metals | Concord Acquisition vs. Hudson Acquisition I | Concord Acquisition vs. Marblegate Acquisition Corp |
| ClimateRock vs. Patria Latin American | ClimateRock vs. ABIVAX Socit Anonyme | ClimateRock vs. Pinnacle Sherman Multi Strategy | ClimateRock vs. Morningstar Unconstrained Allocation |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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