Correlation Between Concord Acquisition and KAT Exploration
Can any of the company-specific risk be diversified away by investing in both Concord Acquisition and KAT Exploration 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 KAT Exploration 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 KAT Exploration, you can compare the effects of market volatilities on Concord Acquisition and KAT Exploration 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 KAT Exploration. Check out your portfolio center. Please also check ongoing floating volatility patterns of Concord Acquisition and KAT Exploration.
Diversification Opportunities for Concord Acquisition and KAT Exploration
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Concord and KAT is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Concord Acquisition Corp and KAT Exploration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KAT Exploration 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 KAT Exploration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KAT Exploration has no effect on the direction of Concord Acquisition i.e., Concord Acquisition and KAT Exploration go up and down completely randomly.
Pair Corralation between Concord Acquisition and KAT Exploration
If you would invest 0.02 in KAT Exploration on September 3, 2024 and sell it today you would earn a total of 0.00 from holding KAT Exploration or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 0.8% |
| Values | Daily Returns |
Concord Acquisition Corp vs. KAT Exploration
Performance |
| Timeline |
| Concord Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| KAT Exploration |
Concord Acquisition and KAT Exploration Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Concord Acquisition and KAT Exploration
The main advantage of trading using opposite Concord Acquisition and KAT Exploration positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Concord Acquisition position performs unexpectedly, KAT Exploration 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 KAT Exploration will offset losses from the drop in KAT Exploration'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 |
| KAT Exploration vs. Southern ITS International | KAT Exploration vs. UHF Logistics Group | KAT Exploration vs. Intl Star | KAT Exploration vs. Church Crawford |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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