Correlation Between Mobiv Acquisition and Graf Acquisition
Can any of the company-specific risk be diversified away by investing in both Mobiv Acquisition and Graf 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 Mobiv Acquisition and Graf Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mobiv Acquisition Corp and Graf Acquisition Corp, you can compare the effects of market volatilities on Mobiv Acquisition and Graf 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 Mobiv Acquisition with a short position of Graf Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mobiv Acquisition and Graf Acquisition.
Diversification Opportunities for Mobiv Acquisition and Graf Acquisition
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Mobiv and Graf is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Mobiv Acquisition Corp and Graf Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Graf Acquisition Corp and Mobiv 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 Mobiv Acquisition Corp are associated (or correlated) with Graf Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Graf Acquisition Corp has no effect on the direction of Mobiv Acquisition i.e., Mobiv Acquisition and Graf Acquisition go up and down completely randomly.
Pair Corralation between Mobiv Acquisition and Graf Acquisition
Given the investment horizon of 90 days Mobiv Acquisition is expected to generate 1.05 times less return on investment than Graf Acquisition. But when comparing it to its historical volatility, Mobiv Acquisition Corp is 1.76 times less risky than Graf Acquisition. It trades about 0.16 of its potential returns per unit of risk. Graf Acquisition Corp is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 993.00 in Graf Acquisition Corp on August 29, 2024 and sell it today you would earn a total of 49.00 from holding Graf Acquisition Corp or generate 4.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.36% |
| Values | Daily Returns |
Mobiv Acquisition Corp vs. Graf Acquisition Corp
Performance |
| Timeline |
| Mobiv Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Graf Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Mobiv Acquisition and Graf Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mobiv Acquisition and Graf Acquisition
The main advantage of trading using opposite Mobiv Acquisition and Graf Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mobiv Acquisition position performs unexpectedly, Graf 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 Graf Acquisition will offset losses from the drop in Graf Acquisition's long position.The idea behind Mobiv Acquisition Corp and Graf 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.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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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