Correlation Between Oxbridge Acquisition and Global Blockchain
Can any of the company-specific risk be diversified away by investing in both Oxbridge Acquisition and Global Blockchain 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 Oxbridge Acquisition and Global Blockchain into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oxbridge Acquisition Corp and Global Blockchain Acquisition, you can compare the effects of market volatilities on Oxbridge Acquisition and Global Blockchain 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 Oxbridge Acquisition with a short position of Global Blockchain. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oxbridge Acquisition and Global Blockchain.
Diversification Opportunities for Oxbridge Acquisition and Global Blockchain
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Oxbridge and Global is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Oxbridge Acquisition Corp and Global Blockchain Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Blockchain and Oxbridge 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 Oxbridge Acquisition Corp are associated (or correlated) with Global Blockchain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Blockchain has no effect on the direction of Oxbridge Acquisition i.e., Oxbridge Acquisition and Global Blockchain go up and down completely randomly.
Pair Corralation between Oxbridge Acquisition and Global Blockchain
Given the investment horizon of 90 days Oxbridge Acquisition Corp is expected to generate 0.53 times more return on investment than Global Blockchain. However, Oxbridge Acquisition Corp is 1.89 times less risky than Global Blockchain. It trades about 0.14 of its potential returns per unit of risk. Global Blockchain Acquisition is currently generating about 0.04 per unit of risk. If you would invest 1,035 in Oxbridge Acquisition Corp on September 5, 2024 and sell it today you would earn a total of 71.00 from holding Oxbridge Acquisition Corp or generate 6.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 30.36% |
| Values | Daily Returns |
Oxbridge Acquisition Corp vs. Global Blockchain Acquisition
Performance |
| Timeline |
| Oxbridge Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Global Blockchain |
Oxbridge Acquisition and Global Blockchain Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oxbridge Acquisition and Global Blockchain
The main advantage of trading using opposite Oxbridge Acquisition and Global Blockchain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oxbridge Acquisition position performs unexpectedly, Global Blockchain 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 Global Blockchain will offset losses from the drop in Global Blockchain's long position.| Oxbridge Acquisition vs. Portage Fintech Acquisition | Oxbridge Acquisition vs. Swiftmerge Acquisition Corp | Oxbridge Acquisition vs. Four Leaf Acquisition | Oxbridge Acquisition vs. IX Acquisition Corp |
| Global Blockchain vs. Visa Class A | Global Blockchain vs. Diamond Hill Investment | Global Blockchain vs. Associated Capital Group | Global Blockchain vs. Deutsche Bank AG |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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