Correlation Between PowerUp Acquisition and Carlyle
Can any of the company-specific risk be diversified away by investing in both PowerUp Acquisition and Carlyle 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 PowerUp Acquisition and Carlyle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PowerUp Acquisition Corp and Carlyle Group, you can compare the effects of market volatilities on PowerUp Acquisition and Carlyle 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 PowerUp Acquisition with a short position of Carlyle. Check out your portfolio center. Please also check ongoing floating volatility patterns of PowerUp Acquisition and Carlyle.
Diversification Opportunities for PowerUp Acquisition and Carlyle
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between PowerUp and Carlyle is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding PowerUp Acquisition Corp and Carlyle Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carlyle Group and PowerUp 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 PowerUp Acquisition Corp are associated (or correlated) with Carlyle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carlyle Group has no effect on the direction of PowerUp Acquisition i.e., PowerUp Acquisition and Carlyle go up and down completely randomly.
Pair Corralation between PowerUp Acquisition and Carlyle
Given the investment horizon of 90 days PowerUp Acquisition Corp is expected to under-perform the Carlyle. But the stock apears to be less risky and, when comparing its historical volatility, PowerUp Acquisition Corp is 2.13 times less risky than Carlyle. The stock trades about -0.06 of its potential returns per unit of risk. The Carlyle Group is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 5,057 in Carlyle Group on August 29, 2024 and sell it today you would earn a total of 295.00 from holding Carlyle Group or generate 5.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PowerUp Acquisition Corp vs. Carlyle Group
Performance |
| Timeline |
| PowerUp Acquisition Corp |
| Carlyle Group |
PowerUp Acquisition and Carlyle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PowerUp Acquisition and Carlyle
The main advantage of trading using opposite PowerUp Acquisition and Carlyle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PowerUp Acquisition position performs unexpectedly, Carlyle 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 Carlyle will offset losses from the drop in Carlyle's long position.| PowerUp Acquisition vs. Aurora Innovation | PowerUp Acquisition vs. HUMANA INC | PowerUp Acquisition vs. Aquagold International | PowerUp Acquisition vs. Barloworld Ltd ADR |
| Carlyle vs. Aurora Innovation | Carlyle vs. HUMANA INC | Carlyle vs. Aquagold International | Carlyle vs. Barloworld Ltd ADR |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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