Correlation Between HHG Capital and Crescera Capital
Can any of the company-specific risk be diversified away by investing in both HHG Capital and Crescera Capital 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 HHG Capital and Crescera Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HHG Capital Corp and Crescera Capital Acquisition, you can compare the effects of market volatilities on HHG Capital and Crescera Capital 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 HHG Capital with a short position of Crescera Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of HHG Capital and Crescera Capital.
Diversification Opportunities for HHG Capital and Crescera Capital
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between HHG and Crescera is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding HHG Capital Corp and Crescera Capital Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crescera Capital Acq and HHG Capital 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 HHG Capital Corp are associated (or correlated) with Crescera Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crescera Capital Acq has no effect on the direction of HHG Capital i.e., HHG Capital and Crescera Capital go up and down completely randomly.
Pair Corralation between HHG Capital and Crescera Capital
If you would invest 1,090 in Crescera Capital Acquisition on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Crescera Capital Acquisition or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 1.12% |
| Values | Daily Returns |
HHG Capital Corp vs. Crescera Capital Acquisition
Performance |
| Timeline |
| HHG Capital Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Crescera Capital Acq |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
HHG Capital and Crescera Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HHG Capital and Crescera Capital
The main advantage of trading using opposite HHG Capital and Crescera Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HHG Capital position performs unexpectedly, Crescera Capital 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 Crescera Capital will offset losses from the drop in Crescera Capital's long position.| HHG Capital vs. Embrace Change Acquisition | HHG Capital vs. Bannix Acquisition Corp | HHG Capital vs. Global Blockchain Acquisition | HHG Capital vs. Gores Holdings IX |
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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