Correlation Between PowerUp Acquisition and Western Union
Can any of the company-specific risk be diversified away by investing in both PowerUp Acquisition and Western Union 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 Union 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 Union Co, you can compare the effects of market volatilities on PowerUp Acquisition and Western Union 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 Union. Check out your portfolio center. Please also check ongoing floating volatility patterns of PowerUp Acquisition and Western Union.
Diversification Opportunities for PowerUp Acquisition and Western Union
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between PowerUp and Western is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding PowerUp Acquisition Corp and Western Union Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Union 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 Union. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Union has no effect on the direction of PowerUp Acquisition i.e., PowerUp Acquisition and Western Union go up and down completely randomly.
Pair Corralation between PowerUp Acquisition and Western Union
Assuming the 90 days horizon PowerUp Acquisition Corp is expected to generate 1.18 times more return on investment than Western Union. However, PowerUp Acquisition is 1.18 times more volatile than Western Union Co. It trades about 0.02 of its potential returns per unit of risk. Western Union Co is currently generating about 0.0 per unit of risk. If you would invest 1,026 in PowerUp Acquisition Corp on August 30, 2024 and sell it today you would earn a total of 119.00 from holding PowerUp Acquisition Corp or generate 11.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
PowerUp Acquisition Corp vs. Western Union Co
Performance |
| Timeline |
| PowerUp Acquisition Corp |
| Western Union |
PowerUp Acquisition and Western Union Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PowerUp Acquisition and Western Union
The main advantage of trading using opposite PowerUp Acquisition and Western Union positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PowerUp Acquisition position performs unexpectedly, Western Union 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 Union will offset losses from the drop in Western Union's 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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