Correlation Between Jaws Mustang and GigCapital5
Can any of the company-specific risk be diversified away by investing in both Jaws Mustang and GigCapital5 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 Jaws Mustang and GigCapital5 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jaws Mustang Acquisition and GigCapital5, you can compare the effects of market volatilities on Jaws Mustang and GigCapital5 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 Jaws Mustang with a short position of GigCapital5. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jaws Mustang and GigCapital5.
Diversification Opportunities for Jaws Mustang and GigCapital5
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Jaws and GigCapital5 is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Jaws Mustang Acquisition and GigCapital5 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GigCapital5 and Jaws Mustang 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 Jaws Mustang Acquisition are associated (or correlated) with GigCapital5. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GigCapital5 has no effect on the direction of Jaws Mustang i.e., Jaws Mustang and GigCapital5 go up and down completely randomly.
Pair Corralation between Jaws Mustang and GigCapital5
If you would invest 1.15 in GigCapital5 on August 29, 2024 and sell it today you would earn a total of 0.00 from holding GigCapital5 or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 8.33% |
| Values | Daily Returns |
Jaws Mustang Acquisition vs. GigCapital5
Performance |
| Timeline |
| Jaws Mustang Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
| GigCapital5 |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Jaws Mustang and GigCapital5 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jaws Mustang and GigCapital5
The main advantage of trading using opposite Jaws Mustang and GigCapital5 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jaws Mustang position performs unexpectedly, GigCapital5 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 GigCapital5 will offset losses from the drop in GigCapital5's long position.The idea behind Jaws Mustang Acquisition and GigCapital5 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.| GigCapital5 vs. Valneva SE ADR | GigCapital5 vs. Payoneer Global | GigCapital5 vs. Uber Technologies | GigCapital5 vs. Usio Inc |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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