Correlation Between Oak Woods and Cascadia Acquisition
Can any of the company-specific risk be diversified away by investing in both Oak Woods and Cascadia 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 Oak Woods and Cascadia Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oak Woods Acquisition and Cascadia Acquisition Corp, you can compare the effects of market volatilities on Oak Woods and Cascadia 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 Oak Woods with a short position of Cascadia Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oak Woods and Cascadia Acquisition.
Diversification Opportunities for Oak Woods and Cascadia Acquisition
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Oak and Cascadia is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Oak Woods Acquisition and Cascadia Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cascadia Acquisition Corp and Oak Woods 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 Oak Woods Acquisition are associated (or correlated) with Cascadia Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cascadia Acquisition Corp has no effect on the direction of Oak Woods i.e., Oak Woods and Cascadia Acquisition go up and down completely randomly.
Pair Corralation between Oak Woods and Cascadia Acquisition
If you would invest 1,144 in Oak Woods Acquisition on November 5, 2024 and sell it today you would earn a total of 17.00 from holding Oak Woods Acquisition or generate 1.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.26% |
| Values | Daily Returns |
Oak Woods Acquisition vs. Cascadia Acquisition Corp
Performance |
| Timeline |
| Oak Woods Acquisition |
| Cascadia Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Oak Woods and Cascadia Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oak Woods and Cascadia Acquisition
The main advantage of trading using opposite Oak Woods and Cascadia Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oak Woods position performs unexpectedly, Cascadia 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 Cascadia Acquisition will offset losses from the drop in Cascadia Acquisition's long position.| Oak Woods vs. United Natural Foods | Oak Woods vs. Aldel Financial II | Oak Woods vs. WK Kellogg Co | Oak Woods vs. Astral Foods Limited |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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