Correlation Between INAQW Old and Graf Acquisition
Can any of the company-specific risk be diversified away by investing in both INAQW Old and Graf Acquisition 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 INAQW Old and Graf Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between INAQW Old and Graf Acquisition Corp, you can compare the effects of market volatilities on INAQW Old and Graf Acquisition 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 INAQW Old with a short position of Graf Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of INAQW Old and Graf Acquisition.
Diversification Opportunities for INAQW Old and Graf Acquisition
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between INAQW and Graf is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding INAQW Old and Graf Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Graf Acquisition Corp and INAQW Old 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 INAQW Old are associated (or correlated) with Graf Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Graf Acquisition Corp has no effect on the direction of INAQW Old i.e., INAQW Old and Graf Acquisition go up and down completely randomly.
Pair Corralation between INAQW Old and Graf Acquisition
Assuming the 90 days horizon INAQW Old is expected to generate 44.9 times more return on investment than Graf Acquisition. However, INAQW Old is 44.9 times more volatile than Graf Acquisition Corp. It trades about 0.03 of its potential returns per unit of risk. Graf Acquisition Corp is currently generating about 0.08 per unit of risk. If you would invest 13.00 in INAQW Old on October 25, 2024 and sell it today you would earn a total of 0.00 from holding INAQW Old or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 25.11% |
| Values | Daily Returns |
INAQW Old vs. Graf Acquisition Corp
Performance |
| Timeline |
| INAQW Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| Graf Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
INAQW Old and Graf Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INAQW Old and Graf Acquisition
The main advantage of trading using opposite INAQW Old and Graf Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INAQW Old position performs unexpectedly, Graf Acquisition 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 Acquisition will offset losses from the drop in Graf Acquisition's long position.| INAQW Old vs. AMCON Distributing | INAQW Old vs. Air Lease | INAQW Old vs. MEDIFAST INC | INAQW Old vs. Marfrig Global Foods |
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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