Correlation Between Malacca Straits and Greencity Acquisition
Can any of the company-specific risk be diversified away by investing in both Malacca Straits and Greencity 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 Malacca Straits and Greencity Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Malacca Straits Acquisition and Greencity Acquisition Corp, you can compare the effects of market volatilities on Malacca Straits and Greencity 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 Malacca Straits with a short position of Greencity Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Malacca Straits and Greencity Acquisition.
Diversification Opportunities for Malacca Straits and Greencity Acquisition
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Malacca and Greencity is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Malacca Straits Acquisition and Greencity Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greencity Acquisition and Malacca Straits 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 Malacca Straits Acquisition are associated (or correlated) with Greencity Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greencity Acquisition has no effect on the direction of Malacca Straits i.e., Malacca Straits and Greencity Acquisition go up and down completely randomly.
Pair Corralation between Malacca Straits and Greencity Acquisition
If you would invest 1,146 in Greencity Acquisition Corp on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Greencity Acquisition Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Malacca Straits Acquisition vs. Greencity Acquisition Corp
Performance |
| Timeline |
| Malacca Straits Acqu |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Greencity Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Malacca Straits and Greencity Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Malacca Straits and Greencity Acquisition
The main advantage of trading using opposite Malacca Straits and Greencity Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Malacca Straits position performs unexpectedly, Greencity 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 Greencity Acquisition will offset losses from the drop in Greencity Acquisition's long position.| Malacca Straits vs. Hudson Acquisition I | Malacca Straits vs. Alpha One | Malacca Straits vs. Manaris Corp | Malacca Straits vs. Marblegate Acquisition Corp |
| Greencity Acquisition vs. Boston Beer | Greencity Acquisition vs. Diageo PLC ADR | Greencity Acquisition vs. Thai Beverage PCL | Greencity Acquisition vs. Anheuser Busch Inbev |
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 CEOs Directory module to screen CEOs from public companies around the world.
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