Correlation Between Great Elm and PowerUp Acquisition
Can any of the company-specific risk be diversified away by investing in both Great Elm and PowerUp 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 Great Elm and PowerUp Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Great Elm Group and PowerUp Acquisition Corp, you can compare the effects of market volatilities on Great Elm and PowerUp 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 Great Elm with a short position of PowerUp Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Great Elm and PowerUp Acquisition.
Diversification Opportunities for Great Elm and PowerUp Acquisition
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Great and PowerUp is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Great Elm Group and PowerUp Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PowerUp Acquisition Corp and Great Elm 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 Great Elm Group are associated (or correlated) with PowerUp Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PowerUp Acquisition Corp has no effect on the direction of Great Elm i.e., Great Elm and PowerUp Acquisition go up and down completely randomly.
Pair Corralation between Great Elm and PowerUp Acquisition
Considering the 90-day investment horizon Great Elm Group is expected to under-perform the PowerUp Acquisition. In addition to that, Great Elm is 1.1 times more volatile than PowerUp Acquisition Corp. It trades about -0.01 of its total potential returns per unit of risk. PowerUp Acquisition Corp is currently generating about 0.02 per unit of volatility. If you would invest 1,037 in PowerUp Acquisition Corp on August 31, 2024 and sell it today you would earn a total of 113.00 from holding PowerUp Acquisition Corp or generate 10.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Great Elm Group vs. PowerUp Acquisition Corp
Performance |
| Timeline |
| Great Elm Group |
| PowerUp Acquisition Corp |
Great Elm and PowerUp Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Great Elm and PowerUp Acquisition
The main advantage of trading using opposite Great Elm and PowerUp Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Great Elm position performs unexpectedly, PowerUp 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 PowerUp Acquisition will offset losses from the drop in PowerUp Acquisition's long position.| Great Elm vs. Investcorp Credit Management | Great Elm vs. Monroe Capital Corp | Great Elm vs. Allianzgi Convertible Income | Great Elm vs. John Hancock Income |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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