Correlation Between Hudson Acquisition and ECB Bancorp
Can any of the company-specific risk be diversified away by investing in both Hudson Acquisition and ECB Bancorp 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 Hudson Acquisition and ECB Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hudson Acquisition I and ECB Bancorp, you can compare the effects of market volatilities on Hudson Acquisition and ECB Bancorp 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 Hudson Acquisition with a short position of ECB Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hudson Acquisition and ECB Bancorp.
Diversification Opportunities for Hudson Acquisition and ECB Bancorp
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hudson and ECB is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hudson Acquisition I and ECB Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ECB Bancorp and Hudson 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 Hudson Acquisition I are associated (or correlated) with ECB Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ECB Bancorp has no effect on the direction of Hudson Acquisition i.e., Hudson Acquisition and ECB Bancorp go up and down completely randomly.
Pair Corralation between Hudson Acquisition and ECB Bancorp
If you would invest 1,477 in ECB Bancorp on August 31, 2024 and sell it today you would earn a total of 2.00 from holding ECB Bancorp or generate 0.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hudson Acquisition I vs. ECB Bancorp
Performance |
| Timeline |
| Hudson Acquisition |
| ECB Bancorp |
Hudson Acquisition and ECB Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hudson Acquisition and ECB Bancorp
The main advantage of trading using opposite Hudson Acquisition and ECB Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hudson Acquisition position performs unexpectedly, ECB Bancorp 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 ECB Bancorp will offset losses from the drop in ECB Bancorp's long position.| Hudson Acquisition vs. Qomolangma Acquisition Corp | Hudson Acquisition vs. Spring Valley Acquisition | Hudson Acquisition vs. Horizon Space Acquisition |
| ECB Bancorp vs. KeyCorp | ECB Bancorp vs. Comerica | ECB Bancorp vs. First Horizon National | ECB Bancorp vs. Western Alliance Bancorporation |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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