Correlation Between Moonpig Group and ACG Acquisition
Can any of the company-specific risk be diversified away by investing in both Moonpig Group and ACG 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 Moonpig Group and ACG Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Moonpig Group PLC and ACG Acquisition Co, you can compare the effects of market volatilities on Moonpig Group and ACG 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 Moonpig Group with a short position of ACG Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Moonpig Group and ACG Acquisition.
Diversification Opportunities for Moonpig Group and ACG Acquisition
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Moonpig and ACG is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Moonpig Group PLC and ACG Acquisition Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ACG Acquisition and Moonpig Group 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 Moonpig Group PLC are associated (or correlated) with ACG Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ACG Acquisition has no effect on the direction of Moonpig Group i.e., Moonpig Group and ACG Acquisition go up and down completely randomly.
Pair Corralation between Moonpig Group and ACG Acquisition
Assuming the 90 days trading horizon Moonpig Group is expected to generate 1.32 times less return on investment than ACG Acquisition. In addition to that, Moonpig Group is 1.92 times more volatile than ACG Acquisition Co. It trades about 0.08 of its total potential returns per unit of risk. ACG Acquisition Co is currently generating about 0.21 per unit of volatility. If you would invest 510.00 in ACG Acquisition Co on November 28, 2024 and sell it today you would earn a total of 45.00 from holding ACG Acquisition Co or generate 8.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Moonpig Group PLC vs. ACG Acquisition Co
Performance |
| Timeline |
| Moonpig Group PLC |
| ACG Acquisition |
Moonpig Group and ACG Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Moonpig Group and ACG Acquisition
The main advantage of trading using opposite Moonpig Group and ACG Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Moonpig Group position performs unexpectedly, ACG 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 ACG Acquisition will offset losses from the drop in ACG Acquisition's long position.| Moonpig Group vs. Extra Space Storage | Moonpig Group vs. Public Storage | Moonpig Group vs. Teradata Corp | Moonpig Group vs. Kaufman Et Broad |
| ACG Acquisition vs. Associated British Foods | ACG Acquisition vs. Dairy Farm International | ACG Acquisition vs. Southwest Airlines Co | ACG Acquisition vs. Games Workshop Group |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |