Correlation Between International Media and JV SPAC
Can any of the company-specific risk be diversified away by investing in both International Media and JV 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 International Media and JV SPAC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between International Media Acquisition and JV SPAC Acquisition, you can compare the effects of market volatilities on International Media and JV 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 International Media with a short position of JV SPAC. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Media and JV SPAC.
Diversification Opportunities for International Media and JV SPAC
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between International and JVSA is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding International Media Acquisitio and JV SPAC Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JV SPAC Acquisition and International Media 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 International Media Acquisition are associated (or correlated) with JV SPAC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JV SPAC Acquisition has no effect on the direction of International Media i.e., International Media and JV SPAC go up and down completely randomly.
Pair Corralation between International Media and JV SPAC
If you would invest 1,037 in JV SPAC Acquisition on September 2, 2024 and sell it today you would earn a total of 3.00 from holding JV SPAC Acquisition or generate 0.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
International Media Acquisitio vs. JV SPAC Acquisition
Performance |
| Timeline |
| International Media |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| JV SPAC Acquisition |
International Media and JV SPAC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Media and JV SPAC
The main advantage of trading using opposite International Media and JV SPAC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Media position performs unexpectedly, JV 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 JV SPAC will offset losses from the drop in JV SPAC's long position.The idea behind International Media Acquisition and JV SPAC Acquisition pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| JV SPAC vs. PennantPark Floating Rate | JV SPAC vs. Zane Interactive Publishing | JV SPAC vs. Nomura Holdings ADR | JV SPAC vs. Aldel Financial II |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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