Correlation Between Safe and Accretion Acquisition
Can any of the company-specific risk be diversified away by investing in both Safe and Accretion Acquisition 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 Safe and Accretion Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Safe and Green and Accretion Acquisition Corp, you can compare the effects of market volatilities on Safe and Accretion Acquisition 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 Safe with a short position of Accretion Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Safe and Accretion Acquisition.
Diversification Opportunities for Safe and Accretion Acquisition
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Safe and Accretion is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Safe and Green and Accretion Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accretion Acquisition and Safe 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 Safe and Green are associated (or correlated) with Accretion Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accretion Acquisition has no effect on the direction of Safe i.e., Safe and Accretion Acquisition go up and down completely randomly.
Pair Corralation between Safe and Accretion Acquisition
Considering the 90-day investment horizon Safe and Green is expected to generate 277.69 times more return on investment than Accretion Acquisition. However, Safe is 277.69 times more volatile than Accretion Acquisition Corp. It trades about 0.01 of its potential returns per unit of risk. Accretion Acquisition Corp is currently generating about 0.15 per unit of risk. If you would invest 13,200 in Safe and Green on August 30, 2024 and sell it today you would lose (12,975) from holding Safe and Green or give up 98.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 17.88% |
| Values | Daily Returns |
Safe and Green vs. Accretion Acquisition Corp
Performance |
| Timeline |
| Safe and Green |
| Accretion Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Safe and Accretion Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Safe and Accretion Acquisition
The main advantage of trading using opposite Safe and Accretion Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Safe position performs unexpectedly, Accretion Acquisition 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 Accretion Acquisition will offset losses from the drop in Accretion Acquisition's long position.| Safe vs. Sun Hung Kai | Safe vs. Bayport International Holdings | Safe vs. Landsea Homes Corp | Safe vs. Sino Land Co |
| Accretion Acquisition vs. Welsbach Technology Metals | Accretion Acquisition vs. Broad Capital Acquisition | Accretion Acquisition vs. Alpha One | Accretion Acquisition vs. Manaris Corp |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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