Correlation Between Mullen Automotive and CF Acquisition
Can any of the company-specific risk be diversified away by investing in both Mullen Automotive and CF 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 Mullen Automotive and CF Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mullen Automotive and CF Acquisition Corp, you can compare the effects of market volatilities on Mullen Automotive and CF 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 Mullen Automotive with a short position of CF Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mullen Automotive and CF Acquisition.
Diversification Opportunities for Mullen Automotive and CF Acquisition
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mullen and CFIVW is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Mullen Automotive and CF Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CF Acquisition Corp and Mullen Automotive 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 Mullen Automotive are associated (or correlated) with CF Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CF Acquisition Corp has no effect on the direction of Mullen Automotive i.e., Mullen Automotive and CF Acquisition go up and down completely randomly.
Pair Corralation between Mullen Automotive and CF Acquisition
If you would invest 205.00 in Mullen Automotive on September 1, 2024 and sell it today you would earn a total of 64.00 from holding Mullen Automotive or generate 31.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Mullen Automotive vs. CF Acquisition Corp
Performance |
| Timeline |
| Mullen Automotive |
| CF Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Mullen Automotive and CF Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mullen Automotive and CF Acquisition
The main advantage of trading using opposite Mullen Automotive and CF Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mullen Automotive position performs unexpectedly, CF 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 CF Acquisition will offset losses from the drop in CF Acquisition's long position.| Mullen Automotive vs. Hycroft Mining Holding | Mullen Automotive vs. Imperial Petroleum | Mullen Automotive vs. Camber Energy |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |