Correlation Between OCA Acquisition and Digital Health
Can any of the company-specific risk be diversified away by investing in both OCA Acquisition and Digital Health 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 OCA Acquisition and Digital Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OCA Acquisition Corp and Digital Health Acquisition, you can compare the effects of market volatilities on OCA Acquisition and Digital Health 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 OCA Acquisition with a short position of Digital Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of OCA Acquisition and Digital Health.
Diversification Opportunities for OCA Acquisition and Digital Health
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between OCA and Digital is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding OCA Acquisition Corp and Digital Health Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Digital Health Acqui and OCA Acquisition 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 OCA Acquisition Corp are associated (or correlated) with Digital Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Digital Health Acqui has no effect on the direction of OCA Acquisition i.e., OCA Acquisition and Digital Health go up and down completely randomly.
Pair Corralation between OCA Acquisition and Digital Health
Given the investment horizon of 90 days OCA Acquisition is expected to generate 6.14 times less return on investment than Digital Health. But when comparing it to its historical volatility, OCA Acquisition Corp is 12.0 times less risky than Digital Health. It trades about 0.05 of its potential returns per unit of risk. Digital Health Acquisition is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,205 in Digital Health Acquisition on August 29, 2024 and sell it today you would earn a total of 6.00 from holding Digital Health Acquisition or generate 0.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 83.33% |
| Values | Daily Returns |
OCA Acquisition Corp vs. Digital Health Acquisition
Performance |
| Timeline |
| OCA Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Digital Health Acqui |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
OCA Acquisition and Digital Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OCA Acquisition and Digital Health
The main advantage of trading using opposite OCA Acquisition and Digital Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OCA Acquisition position performs unexpectedly, Digital Health 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 Digital Health will offset losses from the drop in Digital Health's long position.| OCA Acquisition vs. DP Cap Acquisition | OCA Acquisition vs. A SPAC II | OCA Acquisition vs. Athena Technology Acquisition | OCA Acquisition vs. Welsbach Technology Metals |
| Digital Health vs. Insight Acquisition Corp | Digital Health vs. AlphaVest Acquisition Corp | Digital Health vs. Oak Woods Acquisition | Digital Health vs. Insight Acquisition 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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