Correlation Between Accretion Acquisition and CF Acquisition
Can any of the company-specific risk be diversified away by investing in both Accretion Acquisition and CF 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 Accretion Acquisition and CF Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Accretion Acquisition Corp and CF Acquisition VII, you can compare the effects of market volatilities on Accretion Acquisition and CF 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 Accretion Acquisition with a short position of CF Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Accretion Acquisition and CF Acquisition.
Diversification Opportunities for Accretion Acquisition and CF Acquisition
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Accretion and CFFSU is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Accretion Acquisition Corp and CF Acquisition VII in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CF Acquisition VII and Accretion Acquisition 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 Accretion Acquisition Corp are associated (or correlated) with CF Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CF Acquisition VII has no effect on the direction of Accretion Acquisition i.e., Accretion Acquisition and CF Acquisition go up and down completely randomly.
Pair Corralation between Accretion Acquisition and CF Acquisition
Assuming the 90 days horizon Accretion Acquisition Corp is expected to generate 0.3 times more return on investment than CF Acquisition. However, Accretion Acquisition Corp is 3.31 times less risky than CF Acquisition. It trades about 0.17 of its potential returns per unit of risk. CF Acquisition VII is currently generating about 0.05 per unit of risk. If you would invest 1,032 in Accretion Acquisition Corp on November 2, 2024 and sell it today you would earn a total of 23.00 from holding Accretion Acquisition Corp or generate 2.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 23.04% |
| Values | Daily Returns |
Accretion Acquisition Corp vs. CF Acquisition VII
Performance |
| Timeline |
| Accretion Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| CF Acquisition VII |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
Accretion Acquisition and CF Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Accretion Acquisition and CF Acquisition
The main advantage of trading using opposite Accretion Acquisition and CF Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Accretion Acquisition position performs unexpectedly, CF 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 CF Acquisition will offset losses from the drop in CF Acquisition's long position.| Accretion Acquisition vs. NETGEAR | Accretion Acquisition vs. Paysafe | Accretion Acquisition vs. Valneva SE ADR | Accretion Acquisition vs. Uber Technologies |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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