Correlation Between Goal Acquisitions and Breeze Holdings
Can any of the company-specific risk be diversified away by investing in both Goal Acquisitions and Breeze Holdings 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 Goal Acquisitions and Breeze Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goal Acquisitions Corp and Breeze Holdings Acquisition, you can compare the effects of market volatilities on Goal Acquisitions and Breeze Holdings 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 Goal Acquisitions with a short position of Breeze Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goal Acquisitions and Breeze Holdings.
Diversification Opportunities for Goal Acquisitions and Breeze Holdings
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Goal and Breeze is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Goal Acquisitions Corp and Breeze Holdings Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Breeze Holdings Acqu and Goal Acquisitions 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 Goal Acquisitions Corp are associated (or correlated) with Breeze Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Breeze Holdings Acqu has no effect on the direction of Goal Acquisitions i.e., Goal Acquisitions and Breeze Holdings go up and down completely randomly.
Pair Corralation between Goal Acquisitions and Breeze Holdings
Assuming the 90 days horizon Goal Acquisitions is expected to generate 2.03 times less return on investment than Breeze Holdings. But when comparing it to its historical volatility, Goal Acquisitions Corp is 1.07 times less risky than Breeze Holdings. It trades about 0.06 of its potential returns per unit of risk. Breeze Holdings Acquisition is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 10.00 in Breeze Holdings Acquisition on August 30, 2024 and sell it today you would earn a total of 12.00 from holding Breeze Holdings Acquisition or generate 120.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 87.76% |
| Values | Daily Returns |
Goal Acquisitions Corp vs. Breeze Holdings Acquisition
Performance |
| Timeline |
| Goal Acquisitions Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Breeze Holdings Acqu |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Goal Acquisitions and Breeze Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goal Acquisitions and Breeze Holdings
The main advantage of trading using opposite Goal Acquisitions and Breeze Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goal Acquisitions position performs unexpectedly, Breeze Holdings 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 Breeze Holdings will offset losses from the drop in Breeze Holdings' long position.The idea behind Goal Acquisitions Corp and Breeze Holdings 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.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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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