Correlation Between Monterey Capital and TenX Keane
Can any of the company-specific risk be diversified away by investing in both Monterey Capital and TenX Keane 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 Monterey Capital and TenX Keane into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Monterey Capital Acquisition and TenX Keane Acquisition, you can compare the effects of market volatilities on Monterey Capital and TenX Keane 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 Monterey Capital with a short position of TenX Keane. Check out your portfolio center. Please also check ongoing floating volatility patterns of Monterey Capital and TenX Keane.
Diversification Opportunities for Monterey Capital and TenX Keane
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Monterey and TenX is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Monterey Capital Acquisition and TenX Keane Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TenX Keane Acquisition and Monterey Capital 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 Monterey Capital Acquisition are associated (or correlated) with TenX Keane. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TenX Keane Acquisition has no effect on the direction of Monterey Capital i.e., Monterey Capital and TenX Keane go up and down completely randomly.
Pair Corralation between Monterey Capital and TenX Keane
Assuming the 90 days horizon Monterey Capital Acquisition is expected to under-perform the TenX Keane. But the stock apears to be less risky and, when comparing its historical volatility, Monterey Capital Acquisition is 1.01 times less risky than TenX Keane. The stock trades about -0.2 of its potential returns per unit of risk. The TenX Keane Acquisition is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,137 in TenX Keane Acquisition on September 1, 2024 and sell it today you would lose (817.00) from holding TenX Keane Acquisition or give up 71.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 17.65% |
| Values | Daily Returns |
Monterey Capital Acquisition vs. TenX Keane Acquisition
Performance |
| Timeline |
| Monterey Capital Acq |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| TenX Keane Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Monterey Capital and TenX Keane Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Monterey Capital and TenX Keane
The main advantage of trading using opposite Monterey Capital and TenX Keane positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Monterey Capital position performs unexpectedly, TenX Keane 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 TenX Keane will offset losses from the drop in TenX Keane's long position.The idea behind Monterey Capital Acquisition and TenX Keane Acquisition 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.| TenX Keane vs. Embrace Change Acquisition | TenX Keane vs. Bannix Acquisition Corp | TenX Keane vs. Global Blockchain Acquisition | TenX Keane vs. TransAKT |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |