Correlation Between Pinterest and A SPAC
Can any of the company-specific risk be diversified away by investing in both Pinterest and A SPAC 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 Pinterest and A SPAC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pinterest and A SPAC II, you can compare the effects of market volatilities on Pinterest and A SPAC 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 Pinterest with a short position of A SPAC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pinterest and A SPAC.
Diversification Opportunities for Pinterest and A SPAC
Good diversification
The 3 months correlation between Pinterest and ASUUF is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Pinterest and A SPAC II in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on A SPAC II and Pinterest 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 Pinterest are associated (or correlated) with A SPAC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of A SPAC II has no effect on the direction of Pinterest i.e., Pinterest and A SPAC go up and down completely randomly.
Pair Corralation between Pinterest and A SPAC
Given the investment horizon of 90 days Pinterest is expected to generate 4.32 times more return on investment than A SPAC. However, Pinterest is 4.32 times more volatile than A SPAC II. It trades about -0.01 of its potential returns per unit of risk. A SPAC II is currently generating about -0.16 per unit of risk. If you would invest 3,536 in Pinterest on September 4, 2024 and sell it today you would lose (402.00) from holding Pinterest or give up 11.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 21.46% |
| Values | Daily Returns |
Pinterest vs. A SPAC II
Performance |
| Timeline |
| A SPAC II |
Pinterest and A SPAC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pinterest and A SPAC
The main advantage of trading using opposite Pinterest and A SPAC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pinterest position performs unexpectedly, A SPAC 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 A SPAC will offset losses from the drop in A SPAC's long position.| Pinterest vs. Twilio Inc | Pinterest vs. Meta Platforms | Pinterest vs. Alphabet Inc Class C | Pinterest vs. Alphabet Inc Class A |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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