Correlation Between Global Star and Cohen Circle
Can any of the company-specific risk be diversified away by investing in both Global Star and Cohen Circle 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 Global Star and Cohen Circle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Star Acquisition, and Cohen Circle Acquisition, you can compare the effects of market volatilities on Global Star and Cohen Circle 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 Global Star with a short position of Cohen Circle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Star and Cohen Circle.
Diversification Opportunities for Global Star and Cohen Circle
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Global and Cohen is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Global Star Acquisition, and Cohen Circle Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Circle Acquisition and Global Star 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 Global Star Acquisition, are associated (or correlated) with Cohen Circle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cohen Circle Acquisition has no effect on the direction of Global Star i.e., Global Star and Cohen Circle go up and down completely randomly.
Pair Corralation between Global Star and Cohen Circle
Given the investment horizon of 90 days Global Star Acquisition, is expected to generate 15.68 times more return on investment than Cohen Circle. However, Global Star is 15.68 times more volatile than Cohen Circle Acquisition. It trades about 0.17 of its potential returns per unit of risk. Cohen Circle Acquisition is currently generating about 0.12 per unit of risk. If you would invest 1,136 in Global Star Acquisition, on September 2, 2024 and sell it today you would earn a total of 47.00 from holding Global Star Acquisition, or generate 4.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global Star Acquisition, vs. Cohen Circle Acquisition
Performance |
| Timeline |
| Global Star Acquisition, |
| Cohen Circle Acquisition |
Global Star and Cohen Circle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Star and Cohen Circle
The main advantage of trading using opposite Global Star and Cohen Circle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Star position performs unexpectedly, Cohen Circle 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 Cohen Circle will offset losses from the drop in Cohen Circle's long position.| Global Star vs. Visa Class A | Global Star vs. Diamond Hill Investment | Global Star vs. Distoken Acquisition | Global Star vs. Associated Capital Group |
| Cohen Circle vs. Voyager Acquisition Corp | Cohen Circle vs. CO2 Energy Transition | Cohen Circle vs. Vine Hill Capital | Cohen Circle vs. DUET Acquisition Corp |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |