Correlation Between Denali Capital and Aimfinity Investment
Can any of the company-specific risk be diversified away by investing in both Denali Capital and Aimfinity Investment 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 Denali Capital and Aimfinity Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Denali Capital Acquisition and Aimfinity Investment I, you can compare the effects of market volatilities on Denali Capital and Aimfinity Investment 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 Denali Capital with a short position of Aimfinity Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Denali Capital and Aimfinity Investment.
Diversification Opportunities for Denali Capital and Aimfinity Investment
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Denali and Aimfinity is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Denali Capital Acquisition and Aimfinity Investment I in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aimfinity Investment and Denali Capital 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 Denali Capital Acquisition are associated (or correlated) with Aimfinity Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aimfinity Investment has no effect on the direction of Denali Capital i.e., Denali Capital and Aimfinity Investment go up and down completely randomly.
Pair Corralation between Denali Capital and Aimfinity Investment
Assuming the 90 days horizon Denali Capital is expected to generate 1.98 times less return on investment than Aimfinity Investment. But when comparing it to its historical volatility, Denali Capital Acquisition is 1.86 times less risky than Aimfinity Investment. It trades about 0.22 of its potential returns per unit of risk. Aimfinity Investment I is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 1,166 in Aimfinity Investment I on August 27, 2024 and sell it today you would earn a total of 14.00 from holding Aimfinity Investment I or generate 1.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Denali Capital Acquisition vs. Aimfinity Investment I
Performance |
| Timeline |
| Denali Capital Acqui |
| Aimfinity Investment |
Denali Capital and Aimfinity Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Denali Capital and Aimfinity Investment
The main advantage of trading using opposite Denali Capital and Aimfinity Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Denali Capital position performs unexpectedly, Aimfinity Investment 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 Aimfinity Investment will offset losses from the drop in Aimfinity Investment's long position.| Denali Capital vs. PowerUp Acquisition Corp | Denali Capital vs. Aurora Innovation | Denali Capital vs. HUMANA INC | Denali Capital vs. Aquagold International |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |