Correlation Between Kingswood Acquisition and Lakeshore Acquisition
Can any of the company-specific risk be diversified away by investing in both Kingswood Acquisition and Lakeshore 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 Kingswood Acquisition and Lakeshore Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kingswood Acquisition Corp and Lakeshore Acquisition II, you can compare the effects of market volatilities on Kingswood Acquisition and Lakeshore 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 Kingswood Acquisition with a short position of Lakeshore Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingswood Acquisition and Lakeshore Acquisition.
Diversification Opportunities for Kingswood Acquisition and Lakeshore Acquisition
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kingswood and Lakeshore is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Kingswood Acquisition Corp and Lakeshore Acquisition II in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lakeshore Acquisition and Kingswood 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 Kingswood Acquisition Corp are associated (or correlated) with Lakeshore Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lakeshore Acquisition has no effect on the direction of Kingswood Acquisition i.e., Kingswood Acquisition and Lakeshore Acquisition go up and down completely randomly.
Pair Corralation between Kingswood Acquisition and Lakeshore Acquisition
If you would invest 1,062 in Lakeshore Acquisition II on November 3, 2024 and sell it today you would earn a total of 0.00 from holding Lakeshore Acquisition II or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kingswood Acquisition Corp vs. Lakeshore Acquisition II
Performance |
| Timeline |
| Kingswood Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Lakeshore Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Kingswood Acquisition and Lakeshore Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingswood Acquisition and Lakeshore Acquisition
The main advantage of trading using opposite Kingswood Acquisition and Lakeshore Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingswood Acquisition position performs unexpectedly, Lakeshore 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 Lakeshore Acquisition will offset losses from the drop in Lakeshore Acquisition's long position.| Kingswood Acquisition vs. ClimateRock Class A | Kingswood Acquisition vs. Valuence Merger Corp | Kingswood Acquisition vs. Valuence Merger Corp |
| Lakeshore Acquisition vs. Manaris Corp | Lakeshore Acquisition vs. Alpha One | Lakeshore Acquisition vs. Goldenstone Acquisition |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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