Correlation Between New Generation and Sizzle Acquisition
Can any of the company-specific risk be diversified away by investing in both New Generation and Sizzle 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 New Generation and Sizzle Acquisition 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 Sizzle Acquisition Corp, you can compare the effects of market volatilities on New Generation and Sizzle 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 New Generation with a short position of Sizzle Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Generation and Sizzle Acquisition.
Diversification Opportunities for New Generation and Sizzle Acquisition
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between New and Sizzle is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding New Generation Consumer and Sizzle Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sizzle Acquisition Corp 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 Sizzle Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sizzle Acquisition Corp has no effect on the direction of New Generation i.e., New Generation and Sizzle Acquisition go up and down completely randomly.
Pair Corralation between New Generation and Sizzle Acquisition
If you would invest 0.16 in New Generation Consumer on September 12, 2024 and sell it today you would lose (0.08) from holding New Generation Consumer or give up 50.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 0.57% |
| Values | Daily Returns |
New Generation Consumer vs. Sizzle Acquisition Corp
Performance |
| Timeline |
| New Generation Consumer |
| Sizzle Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
New Generation and Sizzle Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New Generation and Sizzle Acquisition
The main advantage of trading using opposite New Generation and Sizzle Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Generation position performs unexpectedly, Sizzle 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 Sizzle Acquisition will offset losses from the drop in Sizzle Acquisition's long position.| New Generation vs. Green Planet Bio | New Generation vs. Azure Holding Group | New Generation vs. Four Leaf Acquisition | New Generation vs. Opus Magnum Ameris |
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..
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