Correlation Between EVe Mobility and Graf Global
Can any of the company-specific risk be diversified away by investing in both EVe Mobility and Graf 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 EVe Mobility and Graf Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EVe Mobility Acquisition and Graf Global Corp, you can compare the effects of market volatilities on EVe Mobility and Graf 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 EVe Mobility with a short position of Graf Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of EVe Mobility and Graf Global.
Diversification Opportunities for EVe Mobility and Graf Global
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between EVe and Graf is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding EVe Mobility Acquisition and Graf Global Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Graf Global Corp and EVe Mobility 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 EVe Mobility Acquisition are associated (or correlated) with Graf Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Graf Global Corp has no effect on the direction of EVe Mobility i.e., EVe Mobility and Graf Global go up and down completely randomly.
Pair Corralation between EVe Mobility and Graf Global
Considering the 90-day investment horizon EVe Mobility Acquisition is expected to generate 1.64 times more return on investment than Graf Global. However, EVe Mobility is 1.64 times more volatile than Graf Global Corp. It trades about 0.14 of its potential returns per unit of risk. Graf Global Corp is currently generating about -0.03 per unit of risk. If you would invest 1,120 in EVe Mobility Acquisition on August 30, 2024 and sell it today you would earn a total of 8.00 from holding EVe Mobility Acquisition or generate 0.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
EVe Mobility Acquisition vs. Graf Global Corp
Performance |
| Timeline |
| EVe Mobility Acquisition |
| Graf Global Corp |
EVe Mobility and Graf Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EVe Mobility and Graf Global
The main advantage of trading using opposite EVe Mobility and Graf Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EVe Mobility position performs unexpectedly, Graf 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 Graf Global will offset losses from the drop in Graf Global's long position.| EVe Mobility vs. Pyrophyte Acquisition Corp | EVe Mobility vs. Cartesian Growth | EVe Mobility vs. Oak Woods Acquisition |
| Graf Global vs. Marfrig Global Foods | Graf Global vs. Bridgford Foods | Graf Global vs. Verra Mobility Corp | Graf Global vs. Hooker Furniture |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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