Correlation Between Swiftmerge Acquisition and ClimateRock
Can any of the company-specific risk be diversified away by investing in both Swiftmerge Acquisition and ClimateRock 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 Swiftmerge Acquisition and ClimateRock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Swiftmerge Acquisition Corp and ClimateRock Class A, you can compare the effects of market volatilities on Swiftmerge Acquisition and ClimateRock 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 Swiftmerge Acquisition with a short position of ClimateRock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Swiftmerge Acquisition and ClimateRock.
Diversification Opportunities for Swiftmerge Acquisition and ClimateRock
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Swiftmerge and ClimateRock is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Swiftmerge Acquisition Corp and ClimateRock Class A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ClimateRock Class and Swiftmerge 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 Swiftmerge Acquisition Corp are associated (or correlated) with ClimateRock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ClimateRock Class has no effect on the direction of Swiftmerge Acquisition i.e., Swiftmerge Acquisition and ClimateRock go up and down completely randomly.
Pair Corralation between Swiftmerge Acquisition and ClimateRock
Assuming the 90 days horizon Swiftmerge Acquisition Corp is expected to under-perform the ClimateRock. In addition to that, Swiftmerge Acquisition is 5.04 times more volatile than ClimateRock Class A. It trades about -0.22 of its total potential returns per unit of risk. ClimateRock Class A is currently generating about 0.27 per unit of volatility. If you would invest 1,160 in ClimateRock Class A on August 28, 2024 and sell it today you would earn a total of 5.00 from holding ClimateRock Class A or generate 0.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Swiftmerge Acquisition Corp vs. ClimateRock Class A
Performance |
| Timeline |
| Swiftmerge Acquisition |
| ClimateRock Class |
Swiftmerge Acquisition and ClimateRock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Swiftmerge Acquisition and ClimateRock
The main advantage of trading using opposite Swiftmerge Acquisition and ClimateRock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Swiftmerge Acquisition position performs unexpectedly, ClimateRock 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 ClimateRock will offset losses from the drop in ClimateRock's long position.| Swiftmerge Acquisition vs. Target Global Acquisition | Swiftmerge Acquisition vs. Pearl Holdings Acquisition |
| ClimateRock vs. AlphaVest Acquisition Corp | ClimateRock vs. Golden Star Acquisition | ClimateRock vs. Alpha One | ClimateRock vs. Manaris Corp |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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