Correlation Between Elliott Opportunity and LAMF Global
Can any of the company-specific risk be diversified away by investing in both Elliott Opportunity and LAMF Global 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 LAMF Global 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 LAMF Global Ventures, you can compare the effects of market volatilities on Elliott Opportunity and LAMF Global 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 LAMF Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elliott Opportunity and LAMF Global.
Diversification Opportunities for Elliott Opportunity and LAMF Global
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Elliott and LAMF is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Elliott Opportunity II and LAMF Global Ventures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LAMF Global Ventures 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 LAMF Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LAMF Global Ventures has no effect on the direction of Elliott Opportunity i.e., Elliott Opportunity and LAMF Global go up and down completely randomly.
Pair Corralation between Elliott Opportunity and LAMF Global
If you would invest 1,051 in LAMF Global Ventures on August 29, 2024 and sell it today you would earn a total of 0.00 from holding LAMF Global Ventures or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Elliott Opportunity II vs. LAMF Global Ventures
Performance |
| Timeline |
| Elliott Opportunity |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| LAMF Global Ventures |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Elliott Opportunity and LAMF Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elliott Opportunity and LAMF Global
The main advantage of trading using opposite Elliott Opportunity and LAMF Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elliott Opportunity position performs unexpectedly, LAMF Global 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 LAMF Global will offset losses from the drop in LAMF Global'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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |