Correlation Between Embrace Change and Noble Rock
Can any of the company-specific risk be diversified away by investing in both Embrace Change and Noble Rock 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 Noble Rock 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 Noble Rock Acquisition, you can compare the effects of market volatilities on Embrace Change and Noble Rock 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 Noble Rock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Embrace Change and Noble Rock.
Diversification Opportunities for Embrace Change and Noble Rock
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Embrace and Noble is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Embrace Change Acquisition and Noble Rock Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Noble Rock Acquisition 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 Noble Rock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Noble Rock Acquisition has no effect on the direction of Embrace Change i.e., Embrace Change and Noble Rock go up and down completely randomly.
Pair Corralation between Embrace Change and Noble Rock
If you would invest 1,124 in Embrace Change Acquisition on September 1, 2024 and sell it today you would earn a total of 41.00 from holding Embrace Change Acquisition or generate 3.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.79% |
| Values | Daily Returns |
Embrace Change Acquisition vs. Noble Rock Acquisition
Performance |
| Timeline |
| Embrace Change Acqui |
| Noble Rock Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Embrace Change and Noble Rock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Embrace Change and Noble Rock
The main advantage of trading using opposite Embrace Change and Noble Rock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Embrace Change position performs unexpectedly, Noble Rock 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 Noble Rock will offset losses from the drop in Noble Rock'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 |
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.
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