Correlation Between PowerUp Acquisition and Mastercard
Can any of the company-specific risk be diversified away by investing in both PowerUp Acquisition and Mastercard 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 Mastercard 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 Mastercard, you can compare the effects of market volatilities on PowerUp Acquisition and Mastercard 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 Mastercard. Check out your portfolio center. Please also check ongoing floating volatility patterns of PowerUp Acquisition and Mastercard.
Diversification Opportunities for PowerUp Acquisition and Mastercard
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between PowerUp and Mastercard is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding PowerUp Acquisition Corp and Mastercard in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mastercard 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 Mastercard. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mastercard has no effect on the direction of PowerUp Acquisition i.e., PowerUp Acquisition and Mastercard go up and down completely randomly.
Pair Corralation between PowerUp Acquisition and Mastercard
Assuming the 90 days horizon PowerUp Acquisition is expected to generate 2.37 times less return on investment than Mastercard. In addition to that, PowerUp Acquisition is 1.74 times more volatile than Mastercard. It trades about 0.02 of its total potential returns per unit of risk. Mastercard is currently generating about 0.09 per unit of volatility. If you would invest 34,472 in Mastercard on August 30, 2024 and sell it today you would earn a total of 18,766 from holding Mastercard or generate 54.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
PowerUp Acquisition Corp vs. Mastercard
Performance |
| Timeline |
| PowerUp Acquisition Corp |
| Mastercard |
PowerUp Acquisition and Mastercard Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PowerUp Acquisition and Mastercard
The main advantage of trading using opposite PowerUp Acquisition and Mastercard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PowerUp Acquisition position performs unexpectedly, Mastercard 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 Mastercard will offset losses from the drop in Mastercard's long position.| PowerUp Acquisition vs. ClimateRock Class A | PowerUp Acquisition vs. CF Acquisition VII | PowerUp Acquisition vs. DP Cap Acquisition |
| Mastercard vs. American Express | Mastercard vs. PayPal Holdings | Mastercard vs. Upstart Holdings | Mastercard vs. Capital One Financial |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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