Correlation Between Insight Acquisition and Graf Global
Can any of the company-specific risk be diversified away by investing in both Insight Acquisition and Graf Global 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 Insight Acquisition and Graf Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Insight Acquisition Corp and Graf Global Corp, you can compare the effects of market volatilities on Insight Acquisition and Graf Global 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 Insight Acquisition with a short position of Graf Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Insight Acquisition and Graf Global.
Diversification Opportunities for Insight Acquisition and Graf Global
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Insight and Graf is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Insight Acquisition Corp and Graf Global Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Graf Global Corp and Insight 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 Insight Acquisition Corp are associated (or correlated) with Graf Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Graf Global Corp has no effect on the direction of Insight Acquisition i.e., Insight Acquisition and Graf Global go up and down completely randomly.
Pair Corralation between Insight Acquisition and Graf Global
Assuming the 90 days horizon Insight Acquisition Corp is expected to generate 47.12 times more return on investment than Graf Global. However, Insight Acquisition is 47.12 times more volatile than Graf Global Corp. It trades about 0.0 of its potential returns per unit of risk. Graf Global Corp is currently generating about -0.03 per unit of risk. If you would invest 1,115 in Insight Acquisition Corp on August 30, 2024 and sell it today you would lose (41.00) from holding Insight Acquisition Corp or give up 3.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Insight Acquisition Corp vs. Graf Global Corp
Performance |
| Timeline |
| Insight Acquisition Corp |
| Graf Global Corp |
Insight Acquisition and Graf Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Insight Acquisition and Graf Global
The main advantage of trading using opposite Insight Acquisition and Graf Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Insight Acquisition position performs unexpectedly, Graf Global 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 Graf Global will offset losses from the drop in Graf Global's long position.| Insight Acquisition vs. Uranium Energy Corp | Insight Acquisition vs. Neogen | Insight Acquisition vs. Sonida Senior Living | Insight Acquisition vs. Teleflex Incorporated |
| Graf Global vs. Marfrig Global Foods | Graf Global vs. Bridgford Foods | Graf Global vs. Verra Mobility Corp | Graf Global vs. Hooker Furniture |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |