Correlation Between Gores Holdings and Cartesian Growth
Can any of the company-specific risk be diversified away by investing in both Gores Holdings and Cartesian Growth 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 Gores Holdings and Cartesian Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gores Holdings IX and Cartesian Growth, you can compare the effects of market volatilities on Gores Holdings and Cartesian Growth 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 Gores Holdings with a short position of Cartesian Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gores Holdings and Cartesian Growth.
Diversification Opportunities for Gores Holdings and Cartesian Growth
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Gores and Cartesian is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Gores Holdings IX and Cartesian Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cartesian Growth and Gores 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 Gores Holdings IX are associated (or correlated) with Cartesian Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cartesian Growth has no effect on the direction of Gores Holdings i.e., Gores Holdings and Cartesian Growth go up and down completely randomly.
Pair Corralation between Gores Holdings and Cartesian Growth
Given the investment horizon of 90 days Gores Holdings IX is expected to under-perform the Cartesian Growth. But the stock apears to be less risky and, when comparing its historical volatility, Gores Holdings IX is 1.07 times less risky than Cartesian Growth. The stock trades about -0.07 of its potential returns per unit of risk. The Cartesian Growth is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,127 in Cartesian Growth on September 13, 2024 and sell it today you would earn a total of 36.00 from holding Cartesian Growth or generate 3.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.6% |
| Values | Daily Returns |
Gores Holdings IX vs. Cartesian Growth
Performance |
| Timeline |
| Gores Holdings IX |
| Cartesian Growth |
Gores Holdings and Cartesian Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gores Holdings and Cartesian Growth
The main advantage of trading using opposite Gores Holdings and Cartesian Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gores Holdings position performs unexpectedly, Cartesian Growth 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 Cartesian Growth will offset losses from the drop in Cartesian Growth's long position.| Gores Holdings vs. Consilium Acquisition I | Gores Holdings vs. Investcorp Europe Acquisition | Gores Holdings vs. Global Blockchain Acquisition |
| Cartesian Growth vs. Investcorp India Acquisition | Cartesian Growth vs. Rf Acquisition Corp | Cartesian Growth vs. Metal Sky Star |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |