Correlation Between Digital Health and ESGEN Acquisition
Can any of the company-specific risk be diversified away by investing in both Digital Health and ESGEN 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 Digital Health and ESGEN Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Digital Health Acquisition and ESGEN Acquisition Corp, you can compare the effects of market volatilities on Digital Health and ESGEN 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 Digital Health with a short position of ESGEN Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Digital Health and ESGEN Acquisition.
Diversification Opportunities for Digital Health and ESGEN Acquisition
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Digital and ESGEN is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Digital Health Acquisition and ESGEN Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ESGEN Acquisition Corp and Digital Health 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 Digital Health Acquisition are associated (or correlated) with ESGEN Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ESGEN Acquisition Corp has no effect on the direction of Digital Health i.e., Digital Health and ESGEN Acquisition go up and down completely randomly.
Pair Corralation between Digital Health and ESGEN Acquisition
If you would invest 1,200 in Digital Health Acquisition on August 26, 2024 and sell it today you would earn a total of 11.00 from holding Digital Health Acquisition or generate 0.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 0.44% |
| Values | Daily Returns |
Digital Health Acquisition vs. ESGEN Acquisition Corp
Performance |
| Timeline |
| Digital Health Acqui |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| ESGEN Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Digital Health and ESGEN Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Digital Health and ESGEN Acquisition
The main advantage of trading using opposite Digital Health and ESGEN Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Digital Health position performs unexpectedly, ESGEN 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 ESGEN Acquisition will offset losses from the drop in ESGEN Acquisition's long position.| Digital Health vs. Insight Acquisition Corp | Digital Health vs. AlphaVest Acquisition Corp | Digital Health vs. Oak Woods Acquisition | Digital Health vs. Insight Acquisition Corp |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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