Correlation Between Kingswood Acquisition and SHUAA Partners
Can any of the company-specific risk be diversified away by investing in both Kingswood Acquisition and SHUAA Partners 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 SHUAA Partners 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 SHUAA Partners Acquisition, you can compare the effects of market volatilities on Kingswood Acquisition and SHUAA Partners 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 SHUAA Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingswood Acquisition and SHUAA Partners.
Diversification Opportunities for Kingswood Acquisition and SHUAA Partners
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kingswood and SHUAA is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Kingswood Acquisition Corp and SHUAA Partners Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SHUAA Partners Acqui 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 SHUAA Partners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SHUAA Partners Acqui has no effect on the direction of Kingswood Acquisition i.e., Kingswood Acquisition and SHUAA Partners go up and down completely randomly.
Pair Corralation between Kingswood Acquisition and SHUAA Partners
If you would invest 1,077 in SHUAA Partners Acquisition on September 1, 2024 and sell it today you would earn a total of 0.00 from holding SHUAA Partners Acquisition or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kingswood Acquisition Corp vs. SHUAA Partners Acquisition
Performance |
| Timeline |
| Kingswood Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| SHUAA Partners Acqui |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Kingswood Acquisition and SHUAA Partners Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingswood Acquisition and SHUAA Partners
The main advantage of trading using opposite Kingswood Acquisition and SHUAA Partners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingswood Acquisition position performs unexpectedly, SHUAA Partners 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 SHUAA Partners will offset losses from the drop in SHUAA Partners' long position.| Kingswood Acquisition vs. Insight Acquisition Corp | Kingswood Acquisition vs. ClimateRock Class A | Kingswood Acquisition vs. Valuence Merger 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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