Correlation Between GSR II and A SPAC
Can any of the company-specific risk be diversified away by investing in both GSR II and A 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 GSR II and A SPAC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GSR II Meteora and A SPAC I, you can compare the effects of market volatilities on GSR II and A 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 GSR II with a short position of A SPAC. Check out your portfolio center. Please also check ongoing floating volatility patterns of GSR II and A SPAC.
Diversification Opportunities for GSR II and A SPAC
Good diversification
The 3 months correlation between GSR and ASCAU is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding GSR II Meteora and A SPAC I in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on A SPAC I and GSR II 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 GSR II Meteora are associated (or correlated) with A SPAC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of A SPAC I has no effect on the direction of GSR II i.e., GSR II and A SPAC go up and down completely randomly.
Pair Corralation between GSR II and A SPAC
If you would invest 1,079 in A SPAC I on September 1, 2024 and sell it today you would earn a total of 0.00 from holding A SPAC I or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GSR II Meteora vs. A SPAC I
Performance |
| Timeline |
| GSR II Meteora |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| A SPAC I |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
GSR II and A SPAC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GSR II and A SPAC
The main advantage of trading using opposite GSR II and A SPAC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GSR II position performs unexpectedly, A 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 A SPAC will offset losses from the drop in A SPAC's long position.| GSR II vs. Figs Inc | GSR II vs. Shoe Carnival | GSR II vs. Four Seasons Education | GSR II vs. Under Armour C |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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