Correlation Between ESH Acquisition and Clover Leaf
Can any of the company-specific risk be diversified away by investing in both ESH Acquisition and Clover Leaf 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 ESH Acquisition and Clover Leaf into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ESH Acquisition Corp and Clover Leaf Capital, you can compare the effects of market volatilities on ESH Acquisition and Clover Leaf 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 ESH Acquisition with a short position of Clover Leaf. Check out your portfolio center. Please also check ongoing floating volatility patterns of ESH Acquisition and Clover Leaf.
Diversification Opportunities for ESH Acquisition and Clover Leaf
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between ESH and Clover is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding ESH Acquisition Corp and Clover Leaf Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clover Leaf Capital and ESH 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 ESH Acquisition Corp are associated (or correlated) with Clover Leaf. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clover Leaf Capital has no effect on the direction of ESH Acquisition i.e., ESH Acquisition and Clover Leaf go up and down completely randomly.
Pair Corralation between ESH Acquisition and Clover Leaf
If you would invest 1,066 in ESH Acquisition Corp on August 30, 2024 and sell it today you would earn a total of 2.00 from holding ESH Acquisition Corp or generate 0.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
ESH Acquisition Corp vs. Clover Leaf Capital
Performance |
| Timeline |
| ESH Acquisition Corp |
| Clover Leaf Capital |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Strong
ESH Acquisition and Clover Leaf Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ESH Acquisition and Clover Leaf
The main advantage of trading using opposite ESH Acquisition and Clover Leaf positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ESH Acquisition position performs unexpectedly, Clover Leaf 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 Clover Leaf will offset losses from the drop in Clover Leaf's long position.| ESH Acquisition vs. Grocery Outlet Holding | ESH Acquisition vs. Marfrig Global Foods | ESH Acquisition vs. NH Foods Ltd | ESH Acquisition vs. Amgen Inc |
| Clover Leaf vs. Ziff Davis | Clover Leaf vs. Zhihu Inc ADR | Clover Leaf vs. Kaltura | Clover Leaf vs. Nextplat Corp |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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