Correlation Between GigCapital5 and ESGEN Acquisition
Can any of the company-specific risk be diversified away by investing in both GigCapital5 and ESGEN 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 GigCapital5 and ESGEN Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GigCapital5 and ESGEN Acquisition Corp, you can compare the effects of market volatilities on GigCapital5 and ESGEN 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 GigCapital5 with a short position of ESGEN Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of GigCapital5 and ESGEN Acquisition.
Diversification Opportunities for GigCapital5 and ESGEN Acquisition
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GigCapital5 and ESGEN is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GigCapital5 and ESGEN Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ESGEN Acquisition Corp and GigCapital5 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 GigCapital5 are associated (or correlated) with ESGEN Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ESGEN Acquisition Corp has no effect on the direction of GigCapital5 i.e., GigCapital5 and ESGEN Acquisition go up and down completely randomly.
Pair Corralation between GigCapital5 and ESGEN Acquisition
If you would invest (100.00) in ESGEN Acquisition Corp on November 30, 2024 and sell it today you would earn a total of 100.00 from holding ESGEN Acquisition Corp or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GigCapital5 vs. ESGEN Acquisition Corp
Performance |
| Timeline |
| GigCapital5 |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| ESGEN Acquisition Corp |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
GigCapital5 and ESGEN Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GigCapital5 and ESGEN Acquisition
The main advantage of trading using opposite GigCapital5 and ESGEN Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GigCapital5 position performs unexpectedly, ESGEN 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 ESGEN Acquisition will offset losses from the drop in ESGEN Acquisition's long position.| GigCapital5 vs. Wizz Air Holdings | ||
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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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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