Correlation Between Generation Asia and Ahren Acquisition
Can any of the company-specific risk be diversified away by investing in both Generation Asia and Ahren 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 Generation Asia and Ahren Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Generation Asia I and Ahren Acquisition Corp, you can compare the effects of market volatilities on Generation Asia and Ahren 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 Generation Asia with a short position of Ahren Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Generation Asia and Ahren Acquisition.
Diversification Opportunities for Generation Asia and Ahren Acquisition
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Generation and Ahren is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Generation Asia I and Ahren Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ahren Acquisition Corp and Generation Asia 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 Generation Asia I are associated (or correlated) with Ahren Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ahren Acquisition Corp has no effect on the direction of Generation Asia i.e., Generation Asia and Ahren Acquisition go up and down completely randomly.
Pair Corralation between Generation Asia and Ahren Acquisition
If you would invest 1,043 in Generation Asia I on September 2, 2024 and sell it today you would earn a total of 97.00 from holding Generation Asia I or generate 9.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 1.67% |
| Values | Daily Returns |
Generation Asia I vs. Ahren Acquisition Corp
Performance |
| Timeline |
| Generation Asia I |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
| Ahren Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Generation Asia and Ahren Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Generation Asia and Ahren Acquisition
The main advantage of trading using opposite Generation Asia and Ahren Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Generation Asia position performs unexpectedly, Ahren 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 Ahren Acquisition will offset losses from the drop in Ahren Acquisition's long position.| Generation Asia vs. Green Planet Bio | Generation Asia vs. Opus Magnum Ameris | Generation Asia vs. Azure Holding Group | Generation Asia vs. Four Leaf Acquisition |
| Ahren Acquisition vs. Manaris Corp | Ahren Acquisition vs. Alpha Star Acquisition | Ahren Acquisition vs. Alpha One | Ahren Acquisition vs. Athena Technology 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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