Correlation Between Mars Acquisition and LAMF Global
Can any of the company-specific risk be diversified away by investing in both Mars Acquisition and LAMF Global 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 Mars Acquisition and LAMF Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mars Acquisition Corp and LAMF Global Ventures, you can compare the effects of market volatilities on Mars Acquisition and LAMF Global 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 Mars Acquisition with a short position of LAMF Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mars Acquisition and LAMF Global.
Diversification Opportunities for Mars Acquisition and LAMF Global
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Mars and LAMF is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Mars Acquisition Corp and LAMF Global Ventures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LAMF Global Ventures and Mars 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 Mars Acquisition Corp are associated (or correlated) with LAMF Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LAMF Global Ventures has no effect on the direction of Mars Acquisition i.e., Mars Acquisition and LAMF Global go up and down completely randomly.
Pair Corralation between Mars Acquisition and LAMF Global
If you would invest 1,051 in LAMF Global Ventures on October 24, 2024 and sell it today you would earn a total of 0.00 from holding LAMF Global Ventures or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 12.5% |
| Values | Daily Returns |
Mars Acquisition Corp vs. LAMF Global Ventures
Performance |
| Timeline |
| Mars Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| LAMF Global Ventures |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Mars Acquisition and LAMF Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mars Acquisition and LAMF Global
The main advantage of trading using opposite Mars Acquisition and LAMF Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mars Acquisition position performs unexpectedly, LAMF Global 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 LAMF Global will offset losses from the drop in LAMF Global's long position.| Mars Acquisition vs. Celsius Holdings | Mars Acquisition vs. ServiceNow | Mars Acquisition vs. Schweiter Technologies AG | Mars Acquisition vs. Monster Beverage 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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