Correlation Between Concord Acquisition and Keyarch Acquisition
Can any of the company-specific risk be diversified away by investing in both Concord Acquisition and Keyarch Acquisition 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 Keyarch Acquisition 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 Keyarch Acquisition, you can compare the effects of market volatilities on Concord Acquisition and Keyarch Acquisition 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 Keyarch Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Concord Acquisition and Keyarch Acquisition.
Diversification Opportunities for Concord Acquisition and Keyarch Acquisition
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Concord and Keyarch is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Concord Acquisition Corp and Keyarch Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keyarch 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 Keyarch Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keyarch Acquisition has no effect on the direction of Concord Acquisition i.e., Concord Acquisition and Keyarch Acquisition go up and down completely randomly.
Pair Corralation between Concord Acquisition and Keyarch Acquisition
Given the investment horizon of 90 days Concord Acquisition is expected to generate 6.4 times less return on investment than Keyarch Acquisition. But when comparing it to its historical volatility, Concord Acquisition Corp is 11.21 times less risky than Keyarch Acquisition. It trades about 0.14 of its potential returns per unit of risk. Keyarch Acquisition is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,012 in Keyarch Acquisition on August 30, 2024 and sell it today you would earn a total of 142.00 from holding Keyarch Acquisition or generate 14.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.05% |
| Values | Daily Returns |
Concord Acquisition Corp vs. Keyarch Acquisition
Performance |
| Timeline |
| Concord Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Keyarch Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Concord Acquisition and Keyarch Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Concord Acquisition and Keyarch Acquisition
The main advantage of trading using opposite Concord Acquisition and Keyarch Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Concord Acquisition position performs unexpectedly, Keyarch Acquisition 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 Keyarch Acquisition will offset losses from the drop in Keyarch Acquisition'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 |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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