Correlation Between Embrace Change and HHG Capital
Can any of the company-specific risk be diversified away by investing in both Embrace Change and HHG Capital 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 Embrace Change and HHG Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Embrace Change Acquisition and HHG Capital Corp, you can compare the effects of market volatilities on Embrace Change and HHG Capital 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 Embrace Change with a short position of HHG Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Embrace Change and HHG Capital.
Diversification Opportunities for Embrace Change and HHG Capital
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Embrace and HHG is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Embrace Change Acquisition and HHG Capital Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HHG Capital Corp and Embrace Change 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 Embrace Change Acquisition are associated (or correlated) with HHG Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HHG Capital Corp has no effect on the direction of Embrace Change i.e., Embrace Change and HHG Capital go up and down completely randomly.
Pair Corralation between Embrace Change and HHG Capital
Given the investment horizon of 90 days Embrace Change Acquisition is expected to generate 0.17 times more return on investment than HHG Capital. However, Embrace Change Acquisition is 6.02 times less risky than HHG Capital. It trades about 0.16 of its potential returns per unit of risk. HHG Capital Corp is currently generating about 0.01 per unit of risk. If you would invest 1,095 in Embrace Change Acquisition on August 25, 2024 and sell it today you would earn a total of 70.00 from holding Embrace Change Acquisition or generate 6.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 85.15% |
| Values | Daily Returns |
Embrace Change Acquisition vs. HHG Capital Corp
Performance |
| Timeline |
| Embrace Change Acqui |
| HHG Capital Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Embrace Change and HHG Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Embrace Change and HHG Capital
The main advantage of trading using opposite Embrace Change and HHG Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Embrace Change position performs unexpectedly, HHG Capital 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 HHG Capital will offset losses from the drop in HHG Capital's long position.| Embrace Change vs. China Health Management | Embrace Change vs. Absolute Health and | Embrace Change vs. Supurva Healthcare Group | Embrace Change vs. TransAKT |
| HHG Capital vs. Embrace Change Acquisition | HHG Capital vs. Bannix Acquisition Corp | HHG Capital vs. Global Blockchain Acquisition | HHG Capital vs. Gores Holdings IX |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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