Correlation Between New Generation and 26 Capital
Can any of the company-specific risk be diversified away by investing in both New Generation and 26 Capital 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 New Generation and 26 Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between New Generation Consumer and 26 Capital Acquisition, you can compare the effects of market volatilities on New Generation and 26 Capital 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 New Generation with a short position of 26 Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Generation and 26 Capital.
Diversification Opportunities for New Generation and 26 Capital
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between New and ADERW is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding New Generation Consumer and 26 Capital Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 26 Capital Acquisition and New Generation 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 New Generation Consumer are associated (or correlated) with 26 Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 26 Capital Acquisition has no effect on the direction of New Generation i.e., New Generation and 26 Capital go up and down completely randomly.
Pair Corralation between New Generation and 26 Capital
If you would invest 11.00 in 26 Capital Acquisition on August 26, 2024 and sell it today you would earn a total of 0.00 from holding 26 Capital Acquisition or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
New Generation Consumer vs. 26 Capital Acquisition
Performance |
| Timeline |
| New Generation Consumer |
| 26 Capital Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
New Generation and 26 Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New Generation and 26 Capital
The main advantage of trading using opposite New Generation and 26 Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Generation position performs unexpectedly, 26 Capital 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 26 Capital will offset losses from the drop in 26 Capital's long position.| New Generation vs. Xtra Energy Corp | New Generation vs. Arsenal Digital Holdings | New Generation vs. UHF Logistics Group | New Generation vs. XCana Petroleum |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |