Correlation Between Elliott Opportunity and Concord Acquisition
Can any of the company-specific risk be diversified away by investing in both Elliott Opportunity and Concord 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 Elliott Opportunity and Concord Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elliott Opportunity II and Concord Acquisition Corp, you can compare the effects of market volatilities on Elliott Opportunity and Concord 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 Elliott Opportunity with a short position of Concord Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elliott Opportunity and Concord Acquisition.
Diversification Opportunities for Elliott Opportunity and Concord Acquisition
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Elliott and Concord is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Elliott Opportunity II and Concord Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Concord Acquisition Corp and Elliott Opportunity 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 Elliott Opportunity II are associated (or correlated) with Concord Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Concord Acquisition Corp has no effect on the direction of Elliott Opportunity i.e., Elliott Opportunity and Concord Acquisition go up and down completely randomly.
Pair Corralation between Elliott Opportunity and Concord Acquisition
Given the investment horizon of 90 days Elliott Opportunity is expected to generate 253.26 times less return on investment than Concord Acquisition. But when comparing it to its historical volatility, Elliott Opportunity II is 627.77 times less risky than Concord Acquisition. It trades about 0.18 of its potential returns per unit of risk. Concord Acquisition Corp is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 989.00 in Concord Acquisition Corp on August 30, 2024 and sell it today you would lose (989.00) from holding Concord Acquisition Corp or give up 100.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 34.57% |
| Values | Daily Returns |
Elliott Opportunity II vs. Concord Acquisition Corp
Performance |
| Timeline |
| Elliott Opportunity |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Concord Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Elliott Opportunity and Concord Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elliott Opportunity and Concord Acquisition
The main advantage of trading using opposite Elliott Opportunity and Concord Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elliott Opportunity position performs unexpectedly, Concord 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 Concord Acquisition will offset losses from the drop in Concord Acquisition's long position.| Elliott Opportunity vs. Consilium Acquisition I | Elliott Opportunity vs. Israel Acquisitions Corp | Elliott Opportunity vs. Alchemy Investments Acquisition |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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