Correlation Between Mullen Automotive and Accretion Acquisition
Can any of the company-specific risk be diversified away by investing in both Mullen Automotive and Accretion 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 Accretion 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 Accretion Acquisition Corp, you can compare the effects of market volatilities on Mullen Automotive and Accretion 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 Accretion Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mullen Automotive and Accretion Acquisition.
Diversification Opportunities for Mullen Automotive and Accretion Acquisition
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Mullen and Accretion is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Mullen Automotive and Accretion Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accretion Acquisition 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 Accretion Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accretion Acquisition has no effect on the direction of Mullen Automotive i.e., Mullen Automotive and Accretion Acquisition go up and down completely randomly.
Pair Corralation between Mullen Automotive and Accretion Acquisition
Given the investment horizon of 90 days Mullen Automotive is expected to under-perform the Accretion Acquisition. In addition to that, Mullen Automotive is 95.55 times more volatile than Accretion Acquisition Corp. It trades about -0.13 of its total potential returns per unit of risk. Accretion Acquisition Corp is currently generating about 0.2 per unit of volatility. If you would invest 1,000.00 in Accretion Acquisition Corp on August 26, 2024 and sell it today you would earn a total of 42.00 from holding Accretion Acquisition Corp or generate 4.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 31.99% |
| Values | Daily Returns |
Mullen Automotive vs. Accretion Acquisition Corp
Performance |
| Timeline |
| Mullen Automotive |
| Accretion Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Mullen Automotive and Accretion Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mullen Automotive and Accretion Acquisition
The main advantage of trading using opposite Mullen Automotive and Accretion Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mullen Automotive position performs unexpectedly, Accretion 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 Accretion Acquisition will offset losses from the drop in Accretion Acquisition's long position.| Mullen Automotive vs. Hycroft Mining Holding | Mullen Automotive vs. Imperial Petroleum | Mullen Automotive vs. Camber Energy |
| Accretion Acquisition vs. Welsbach Technology Metals | Accretion Acquisition vs. Broad Capital Acquisition | Accretion Acquisition vs. Alpha One | Accretion Acquisition vs. Manaris Corp |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |