Correlation Between PowerUp Acquisition and OneMain Holdings
Can any of the company-specific risk be diversified away by investing in both PowerUp Acquisition and OneMain 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 PowerUp Acquisition and OneMain Holdings 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 OneMain Holdings, you can compare the effects of market volatilities on PowerUp Acquisition and OneMain 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 PowerUp Acquisition with a short position of OneMain Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of PowerUp Acquisition and OneMain Holdings.
Diversification Opportunities for PowerUp Acquisition and OneMain Holdings
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PowerUp and OneMain is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding PowerUp Acquisition Corp and OneMain Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OneMain Holdings 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 OneMain Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OneMain Holdings has no effect on the direction of PowerUp Acquisition i.e., PowerUp Acquisition and OneMain Holdings go up and down completely randomly.
Pair Corralation between PowerUp Acquisition and OneMain Holdings
Assuming the 90 days horizon PowerUp Acquisition Corp is expected to under-perform the OneMain Holdings. But the stock apears to be less risky and, when comparing its historical volatility, PowerUp Acquisition Corp is 5.57 times less risky than OneMain Holdings. The stock trades about -0.2 of its potential returns per unit of risk. The OneMain Holdings is currently generating about 0.35 of returns per unit of risk over similar time horizon. If you would invest 4,658 in OneMain Holdings on August 30, 2024 and sell it today you would earn a total of 1,039 from holding OneMain Holdings or generate 22.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
PowerUp Acquisition Corp vs. OneMain Holdings
Performance |
| Timeline |
| PowerUp Acquisition Corp |
| OneMain Holdings |
PowerUp Acquisition and OneMain Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PowerUp Acquisition and OneMain Holdings
The main advantage of trading using opposite PowerUp Acquisition and OneMain Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PowerUp Acquisition position performs unexpectedly, OneMain 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 OneMain Holdings will offset losses from the drop in OneMain Holdings' long position.| PowerUp Acquisition vs. ClimateRock Class A | PowerUp Acquisition vs. CF Acquisition VII | PowerUp Acquisition vs. DP Cap Acquisition |
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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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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