Correlation Between PowerUp Acquisition and Western Asset
Can any of the company-specific risk be diversified away by investing in both PowerUp Acquisition and Western Asset 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 Western Asset 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 Western Asset Investment, you can compare the effects of market volatilities on PowerUp Acquisition and Western Asset 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 Western Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of PowerUp Acquisition and Western Asset.
Diversification Opportunities for PowerUp Acquisition and Western Asset
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between PowerUp and Western is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding PowerUp Acquisition Corp and Western Asset Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Asset Investment 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 Western Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Asset Investment has no effect on the direction of PowerUp Acquisition i.e., PowerUp Acquisition and Western Asset go up and down completely randomly.
Pair Corralation between PowerUp Acquisition and Western Asset
Given the investment horizon of 90 days PowerUp Acquisition Corp is expected to generate 5.73 times more return on investment than Western Asset. However, PowerUp Acquisition is 5.73 times more volatile than Western Asset Investment. It trades about -0.02 of its potential returns per unit of risk. Western Asset Investment is currently generating about -0.27 per unit of risk. If you would invest 1,221 in PowerUp Acquisition Corp on August 30, 2024 and sell it today you would lose (71.00) from holding PowerUp Acquisition Corp or give up 5.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PowerUp Acquisition Corp vs. Western Asset Investment
Performance |
| Timeline |
| PowerUp Acquisition Corp |
| Western Asset Investment |
PowerUp Acquisition and Western Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PowerUp Acquisition and Western Asset
The main advantage of trading using opposite PowerUp Acquisition and Western Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PowerUp Acquisition position performs unexpectedly, Western Asset 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 Western Asset will offset losses from the drop in Western Asset's long position.The idea behind PowerUp Acquisition Corp and Western Asset Investment 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.| Western Asset vs. ClimateRock Class A | Western Asset vs. CF Acquisition VII | Western Asset vs. DP Cap Acquisition |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |