Correlation Between Noble Rock and TenX Keane
Can any of the company-specific risk be diversified away by investing in both Noble Rock and TenX Keane 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 Noble Rock and TenX Keane into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Noble Rock Acquisition and TenX Keane Acquisition, you can compare the effects of market volatilities on Noble Rock and TenX Keane 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 Noble Rock with a short position of TenX Keane. Check out your portfolio center. Please also check ongoing floating volatility patterns of Noble Rock and TenX Keane.
Diversification Opportunities for Noble Rock and TenX Keane
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Noble and TenX is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Noble Rock Acquisition and TenX Keane Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TenX Keane Acquisition and Noble Rock 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 Noble Rock Acquisition are associated (or correlated) with TenX Keane. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TenX Keane Acquisition has no effect on the direction of Noble Rock i.e., Noble Rock and TenX Keane go up and down completely randomly.
Pair Corralation between Noble Rock and TenX Keane
Assuming the 90 days horizon Noble Rock Acquisition is expected to generate 2.48 times more return on investment than TenX Keane. However, Noble Rock is 2.48 times more volatile than TenX Keane Acquisition. It trades about 0.14 of its potential returns per unit of risk. TenX Keane Acquisition is currently generating about 0.03 per unit of risk. If you would invest 2.51 in Noble Rock Acquisition on August 30, 2024 and sell it today you would earn a total of 1.89 from holding Noble Rock Acquisition or generate 75.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 24.23% |
| Values | Daily Returns |
Noble Rock Acquisition vs. TenX Keane Acquisition
Performance |
| Timeline |
| Noble Rock Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| TenX Keane Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Noble Rock and TenX Keane Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Noble Rock and TenX Keane
The main advantage of trading using opposite Noble Rock and TenX Keane positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Noble Rock position performs unexpectedly, TenX Keane 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 TenX Keane will offset losses from the drop in TenX Keane's long position.The idea behind Noble Rock Acquisition and TenX Keane Acquisition pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| TenX Keane vs. Embrace Change Acquisition | TenX Keane vs. Bannix Acquisition Corp | TenX Keane vs. Global Blockchain Acquisition | TenX Keane vs. TransAKT |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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