Correlation Between Greencity Acquisition and Malacca Straits
Can any of the company-specific risk be diversified away by investing in both Greencity Acquisition and Malacca Straits 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 Greencity Acquisition and Malacca Straits into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greencity Acquisition Corp and Malacca Straits Acq, you can compare the effects of market volatilities on Greencity Acquisition and Malacca Straits 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 Greencity Acquisition with a short position of Malacca Straits. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greencity Acquisition and Malacca Straits.
Diversification Opportunities for Greencity Acquisition and Malacca Straits
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Greencity and Malacca is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Greencity Acquisition Corp and Malacca Straits Acq in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Malacca Straits Acq and Greencity Acquisition 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 Greencity Acquisition Corp are associated (or correlated) with Malacca Straits. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Malacca Straits Acq has no effect on the direction of Greencity Acquisition i.e., Greencity Acquisition and Malacca Straits go up and down completely randomly.
Pair Corralation between Greencity Acquisition and Malacca Straits
Assuming the 90 days horizon Greencity Acquisition Corp is expected to generate 0.5 times more return on investment than Malacca Straits. However, Greencity Acquisition Corp is 2.0 times less risky than Malacca Straits. It trades about 0.09 of its potential returns per unit of risk. Malacca Straits Acq is currently generating about 0.03 per unit of risk. If you would invest 1,066 in Greencity Acquisition Corp on September 3, 2024 and sell it today you would earn a total of 80.00 from holding Greencity Acquisition Corp or generate 7.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.52% |
| Values | Daily Returns |
Greencity Acquisition Corp vs. Malacca Straits Acq
Performance |
| Timeline |
| Greencity Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Malacca Straits Acq |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Greencity Acquisition and Malacca Straits Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greencity Acquisition and Malacca Straits
The main advantage of trading using opposite Greencity Acquisition and Malacca Straits positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greencity Acquisition position performs unexpectedly, Malacca Straits 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 Malacca Straits will offset losses from the drop in Malacca Straits' long position.| Greencity Acquisition vs. Grupo Simec SAB | Greencity Acquisition vs. Coty Inc | Greencity Acquisition vs. United Guardian | Greencity Acquisition vs. Kaiser Aluminum |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |