Correlation Between Embrace Change and PowerUp Acquisition
Can any of the company-specific risk be diversified away by investing in both Embrace Change and PowerUp 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 Embrace Change and PowerUp Acquisition 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 PowerUp Acquisition Corp, you can compare the effects of market volatilities on Embrace Change and PowerUp 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 Embrace Change with a short position of PowerUp Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Embrace Change and PowerUp Acquisition.
Diversification Opportunities for Embrace Change and PowerUp Acquisition
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Embrace and PowerUp is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Embrace Change Acquisition and PowerUp Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PowerUp Acquisition 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 PowerUp Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PowerUp Acquisition Corp has no effect on the direction of Embrace Change i.e., Embrace Change and PowerUp Acquisition go up and down completely randomly.
Pair Corralation between Embrace Change and PowerUp Acquisition
Assuming the 90 days horizon Embrace Change is expected to generate 1.9 times less return on investment than PowerUp Acquisition. But when comparing it to its historical volatility, Embrace Change Acquisition is 1.98 times less risky than PowerUp Acquisition. It trades about 0.02 of its potential returns per unit of risk. PowerUp Acquisition Corp is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,086 in PowerUp Acquisition Corp on August 24, 2024 and sell it today you would earn a total of 64.00 from holding PowerUp Acquisition Corp or generate 5.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Embrace Change Acquisition vs. PowerUp Acquisition Corp
Performance |
| Timeline |
| Embrace Change Acqui |
| PowerUp Acquisition Corp |
Embrace Change and PowerUp Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Embrace Change and PowerUp Acquisition
The main advantage of trading using opposite Embrace Change and PowerUp Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Embrace Change position performs unexpectedly, PowerUp 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 PowerUp Acquisition will offset losses from the drop in PowerUp Acquisition's long position.| Embrace Change vs. PowerUp Acquisition Corp | Embrace Change vs. Aurora Innovation | Embrace Change vs. HUMANA INC | Embrace Change 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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