Correlation Between ESGEN Acquisition and Kingswood Acquisition
Can any of the company-specific risk be diversified away by investing in both ESGEN Acquisition and Kingswood 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 ESGEN Acquisition and Kingswood Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ESGEN Acquisition Corp and Kingswood Acquisition Corp, you can compare the effects of market volatilities on ESGEN Acquisition and Kingswood 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 ESGEN Acquisition with a short position of Kingswood Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of ESGEN Acquisition and Kingswood Acquisition.
Diversification Opportunities for ESGEN Acquisition and Kingswood Acquisition
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ESGEN and Kingswood is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding ESGEN Acquisition Corp and Kingswood Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kingswood Acquisition and ESGEN 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 ESGEN Acquisition Corp are associated (or correlated) with Kingswood Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kingswood Acquisition has no effect on the direction of ESGEN Acquisition i.e., ESGEN Acquisition and Kingswood Acquisition go up and down completely randomly.
Pair Corralation between ESGEN Acquisition and Kingswood Acquisition
If you would invest 0.82 in Kingswood Acquisition Corp on August 26, 2024 and sell it today you would earn a total of 0.00 from holding Kingswood Acquisition Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ESGEN Acquisition Corp vs. Kingswood Acquisition Corp
Performance |
| Timeline |
| ESGEN Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Kingswood Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
ESGEN Acquisition and Kingswood Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ESGEN Acquisition and Kingswood Acquisition
The main advantage of trading using opposite ESGEN Acquisition and Kingswood Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ESGEN Acquisition position performs unexpectedly, Kingswood 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 Kingswood Acquisition will offset losses from the drop in Kingswood Acquisition's long position.| ESGEN Acquisition vs. United Fire Group | ESGEN Acquisition vs. Palomar Holdings | ESGEN Acquisition vs. Old Republic International | ESGEN Acquisition vs. Aspen Insurance Holdings |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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