Correlation Between Elliott Opportunity and Israel Acquisitions
Can any of the company-specific risk be diversified away by investing in both Elliott Opportunity and Israel Acquisitions 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 Israel Acquisitions 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 Israel Acquisitions Corp, you can compare the effects of market volatilities on Elliott Opportunity and Israel Acquisitions 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 Israel Acquisitions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elliott Opportunity and Israel Acquisitions.
Diversification Opportunities for Elliott Opportunity and Israel Acquisitions
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Elliott and Israel is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Elliott Opportunity II and Israel Acquisitions Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Israel Acquisitions 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 Israel Acquisitions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Israel Acquisitions Corp has no effect on the direction of Elliott Opportunity i.e., Elliott Opportunity and Israel Acquisitions go up and down completely randomly.
Pair Corralation between Elliott Opportunity and Israel Acquisitions
Given the investment horizon of 90 days Elliott Opportunity II is expected to generate 0.81 times more return on investment than Israel Acquisitions. However, Elliott Opportunity II is 1.23 times less risky than Israel Acquisitions. It trades about 0.19 of its potential returns per unit of risk. Israel Acquisitions Corp is currently generating about 0.14 per unit of risk. If you would invest 999.00 in Elliott Opportunity II on August 26, 2024 and sell it today you would earn a total of 37.00 from holding Elliott Opportunity II or generate 3.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 32.73% |
| Values | Daily Returns |
Elliott Opportunity II vs. Israel Acquisitions Corp
Performance |
| Timeline |
| Elliott Opportunity |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Israel Acquisitions Corp |
Elliott Opportunity and Israel Acquisitions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elliott Opportunity and Israel Acquisitions
The main advantage of trading using opposite Elliott Opportunity and Israel Acquisitions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elliott Opportunity position performs unexpectedly, Israel Acquisitions 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 Israel Acquisitions will offset losses from the drop in Israel Acquisitions' long position.| Elliott Opportunity vs. Consilium Acquisition I | Elliott Opportunity vs. Israel Acquisitions Corp | Elliott Opportunity vs. Alchemy Investments Acquisition |
| Israel Acquisitions vs. Consilium Acquisition I | Israel Acquisitions vs. DP Cap Acquisition | Israel Acquisitions vs. A SPAC II | Israel Acquisitions vs. Athena Technology 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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