Correlation Between Cartesian Growth and EVe Mobility
Can any of the company-specific risk be diversified away by investing in both Cartesian Growth and EVe Mobility 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 Cartesian Growth and EVe Mobility into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cartesian Growth and EVe Mobility Acquisition, you can compare the effects of market volatilities on Cartesian Growth and EVe Mobility 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 Cartesian Growth with a short position of EVe Mobility. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cartesian Growth and EVe Mobility.
Diversification Opportunities for Cartesian Growth and EVe Mobility
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Cartesian and EVe is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Cartesian Growth and EVe Mobility Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EVe Mobility Acquisition and Cartesian Growth 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 Cartesian Growth are associated (or correlated) with EVe Mobility. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EVe Mobility Acquisition has no effect on the direction of Cartesian Growth i.e., Cartesian Growth and EVe Mobility go up and down completely randomly.
Pair Corralation between Cartesian Growth and EVe Mobility
Given the investment horizon of 90 days Cartesian Growth is expected to generate 1.15 times more return on investment than EVe Mobility. However, Cartesian Growth is 1.15 times more volatile than EVe Mobility Acquisition. It trades about 0.14 of its potential returns per unit of risk. EVe Mobility Acquisition is currently generating about 0.14 per unit of risk. If you would invest 1,155 in Cartesian Growth on August 30, 2024 and sell it today you would earn a total of 9.00 from holding Cartesian Growth or generate 0.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cartesian Growth vs. EVe Mobility Acquisition
Performance |
| Timeline |
| Cartesian Growth |
| EVe Mobility Acquisition |
Cartesian Growth and EVe Mobility Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cartesian Growth and EVe Mobility
The main advantage of trading using opposite Cartesian Growth and EVe Mobility positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cartesian Growth position performs unexpectedly, EVe Mobility 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 EVe Mobility will offset losses from the drop in EVe Mobility's long position.| Cartesian Growth vs. Pyrophyte Acquisition Corp | Cartesian Growth vs. Oak Woods Acquisition | Cartesian Growth vs. Embrace Change Acquisition | Cartesian Growth vs. Bannix Acquisition Corp |
| EVe Mobility vs. Pyrophyte Acquisition Corp | EVe Mobility vs. Cartesian Growth | EVe Mobility vs. Oak Woods 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 Stocks Directory module to find actively traded stocks across global markets.
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