Correlation Between Graham Holdings and Latamgrowth SPAC
Can any of the company-specific risk be diversified away by investing in both Graham Holdings and Latamgrowth SPAC 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 Graham Holdings and Latamgrowth SPAC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Graham Holdings Co and Latamgrowth SPAC Unit, you can compare the effects of market volatilities on Graham Holdings and Latamgrowth SPAC 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 Graham Holdings with a short position of Latamgrowth SPAC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Graham Holdings and Latamgrowth SPAC.
Diversification Opportunities for Graham Holdings and Latamgrowth SPAC
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Graham and Latamgrowth is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Graham Holdings Co and Latamgrowth SPAC Unit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Latamgrowth SPAC Unit and Graham Holdings 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 Graham Holdings Co are associated (or correlated) with Latamgrowth SPAC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Latamgrowth SPAC Unit has no effect on the direction of Graham Holdings i.e., Graham Holdings and Latamgrowth SPAC go up and down completely randomly.
Pair Corralation between Graham Holdings and Latamgrowth SPAC
Considering the 90-day investment horizon Graham Holdings Co is expected to generate 0.15 times more return on investment than Latamgrowth SPAC. However, Graham Holdings Co is 6.73 times less risky than Latamgrowth SPAC. It trades about 0.25 of its potential returns per unit of risk. Latamgrowth SPAC Unit is currently generating about -0.16 per unit of risk. If you would invest 86,550 in Graham Holdings Co on November 3, 2024 and sell it today you would earn a total of 6,332 from holding Graham Holdings Co or generate 7.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 47.62% |
| Values | Daily Returns |
Graham Holdings Co vs. Latamgrowth SPAC Unit
Performance |
| Timeline |
| Graham Holdings |
| Latamgrowth SPAC Unit |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
Graham Holdings and Latamgrowth SPAC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Graham Holdings and Latamgrowth SPAC
The main advantage of trading using opposite Graham Holdings and Latamgrowth SPAC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Graham Holdings position performs unexpectedly, Latamgrowth SPAC 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 Latamgrowth SPAC will offset losses from the drop in Latamgrowth SPAC's long position.| Graham Holdings vs. Cable One | Graham Holdings vs. Adtalem Global Education | Graham Holdings vs. Axalta Coating Systems | Graham Holdings vs. Madison Square Garden |
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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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