Correlation Between Elliott Opportunity and L Catterton
Can any of the company-specific risk be diversified away by investing in both Elliott Opportunity and L Catterton 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 L Catterton 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 L Catterton Asia, you can compare the effects of market volatilities on Elliott Opportunity and L Catterton 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 L Catterton. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elliott Opportunity and L Catterton.
Diversification Opportunities for Elliott Opportunity and L Catterton
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Elliott and LCAA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Elliott Opportunity II and L Catterton Asia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on L Catterton Asia 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 L Catterton. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of L Catterton Asia has no effect on the direction of Elliott Opportunity i.e., Elliott Opportunity and L Catterton go up and down completely randomly.
Pair Corralation between Elliott Opportunity and L Catterton
If you would invest 1,050 in L Catterton Asia on September 3, 2024 and sell it today you would earn a total of 0.00 from holding L Catterton Asia or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Elliott Opportunity II vs. L Catterton Asia
Performance |
| Timeline |
| Elliott Opportunity |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| L Catterton Asia |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Elliott Opportunity and L Catterton Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elliott Opportunity and L Catterton
The main advantage of trading using opposite Elliott Opportunity and L Catterton positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elliott Opportunity position performs unexpectedly, L Catterton 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 L Catterton will offset losses from the drop in L Catterton'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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |