Correlation Between Rose Hill and Global Partner
Can any of the company-specific risk be diversified away by investing in both Rose Hill and Global Partner 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 Rose Hill and Global Partner into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rose Hill Acquisition and Global Partner Acquisition, you can compare the effects of market volatilities on Rose Hill and Global Partner 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 Rose Hill with a short position of Global Partner. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rose Hill and Global Partner.
Diversification Opportunities for Rose Hill and Global Partner
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Rose and Global is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Rose Hill Acquisition and Global Partner Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Partner Acqui and Rose Hill 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 Rose Hill Acquisition are associated (or correlated) with Global Partner. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Partner Acqui has no effect on the direction of Rose Hill i.e., Rose Hill and Global Partner go up and down completely randomly.
Pair Corralation between Rose Hill and Global Partner
If you would invest 3.38 in Rose Hill Acquisition on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Rose Hill Acquisition or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 8.33% |
| Values | Daily Returns |
Rose Hill Acquisition vs. Global Partner Acquisition
Performance |
| Timeline |
| Rose Hill Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Global Partner Acqui |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Rose Hill and Global Partner Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rose Hill and Global Partner
The main advantage of trading using opposite Rose Hill and Global Partner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rose Hill position performs unexpectedly, Global Partner 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 Global Partner will offset losses from the drop in Global Partner's long position.| Rose Hill vs. National Energy Services | Rose Hill vs. Oxbridge Re Holdings | Rose Hill vs. PAVmed Series Z |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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