Correlation Between Concord Acquisition and China Health
Can any of the company-specific risk be diversified away by investing in both Concord Acquisition and China Health 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 China Health 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 China Health Management, you can compare the effects of market volatilities on Concord Acquisition and China Health 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 China Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Concord Acquisition and China Health.
Diversification Opportunities for Concord Acquisition and China Health
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Concord and China is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Concord Acquisition Corp and China Health Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Health Management 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 China Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Health Management has no effect on the direction of Concord Acquisition i.e., Concord Acquisition and China Health go up and down completely randomly.
Pair Corralation between Concord Acquisition and China Health
If you would invest 0.41 in China Health Management on September 3, 2024 and sell it today you would lose (0.01) from holding China Health Management or give up 2.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 0.8% |
| Values | Daily Returns |
Concord Acquisition Corp vs. China Health Management
Performance |
| Timeline |
| Concord Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| China Health Management |
Concord Acquisition and China Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Concord Acquisition and China Health
The main advantage of trading using opposite Concord Acquisition and China Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Concord Acquisition position performs unexpectedly, China Health 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 China Health will offset losses from the drop in China Health'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 |
| China Health vs. Absolute Health and | China Health vs. Embrace Change Acquisition | China Health vs. Supurva Healthcare Group | China Health vs. TransAKT |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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