Correlation Between LAMF Global and AIB Acquisition
Can any of the company-specific risk be diversified away by investing in both LAMF Global and AIB 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 LAMF Global and AIB Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LAMF Global Ventures and AIB Acquisition Corp, you can compare the effects of market volatilities on LAMF Global and AIB 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 LAMF Global with a short position of AIB Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of LAMF Global and AIB Acquisition.
Diversification Opportunities for LAMF Global and AIB Acquisition
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between LAMF and AIB is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding LAMF Global Ventures and AIB Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AIB Acquisition Corp and LAMF Global 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 LAMF Global Ventures are associated (or correlated) with AIB Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AIB Acquisition Corp has no effect on the direction of LAMF Global i.e., LAMF Global and AIB Acquisition go up and down completely randomly.
Pair Corralation between LAMF Global and AIB Acquisition
If you would invest (100.00) in AIB Acquisition Corp on November 28, 2024 and sell it today you would earn a total of 100.00 from holding AIB Acquisition Corp or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
LAMF Global Ventures vs. AIB Acquisition Corp
Performance |
| Timeline |
| LAMF Global Ventures |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| AIB Acquisition Corp |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
LAMF Global and AIB Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LAMF Global and AIB Acquisition
The main advantage of trading using opposite LAMF Global and AIB Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LAMF Global position performs unexpectedly, AIB 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 AIB Acquisition will offset losses from the drop in AIB Acquisition's long position.The idea behind LAMF Global Ventures and AIB Acquisition Corp 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.| AIB Acquisition vs. AlphaTime Acquisition Corp | AIB Acquisition vs. Manaris Corp | AIB Acquisition vs. Alpha One |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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