Correlation Between TradeUP Acquisition and TKB Critical
Can any of the company-specific risk be diversified away by investing in both TradeUP Acquisition and TKB Critical 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 TradeUP Acquisition and TKB Critical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TradeUP Acquisition Corp and TKB Critical Technologies, you can compare the effects of market volatilities on TradeUP Acquisition and TKB Critical 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 TradeUP Acquisition with a short position of TKB Critical. Check out your portfolio center. Please also check ongoing floating volatility patterns of TradeUP Acquisition and TKB Critical.
Diversification Opportunities for TradeUP Acquisition and TKB Critical
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between TradeUP and TKB is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding TradeUP Acquisition Corp and TKB Critical Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TKB Critical Technologies and TradeUP 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 TradeUP Acquisition Corp are associated (or correlated) with TKB Critical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TKB Critical Technologies has no effect on the direction of TradeUP Acquisition i.e., TradeUP Acquisition and TKB Critical go up and down completely randomly.
Pair Corralation between TradeUP Acquisition and TKB Critical
Assuming the 90 days horizon TradeUP Acquisition Corp is expected to generate 117.85 times more return on investment than TKB Critical. However, TradeUP Acquisition is 117.85 times more volatile than TKB Critical Technologies. It trades about 0.2 of its potential returns per unit of risk. TKB Critical Technologies is currently generating about 0.05 per unit of risk. If you would invest 4.13 in TradeUP Acquisition Corp on September 1, 2024 and sell it today you would earn a total of 9.87 from holding TradeUP Acquisition Corp or generate 238.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 45.75% |
| Values | Daily Returns |
TradeUP Acquisition Corp vs. TKB Critical Technologies
Performance |
| Timeline |
| TradeUP Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| TKB Critical Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
TradeUP Acquisition and TKB Critical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TradeUP Acquisition and TKB Critical
The main advantage of trading using opposite TradeUP Acquisition and TKB Critical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TradeUP Acquisition position performs unexpectedly, TKB Critical 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 TKB Critical will offset losses from the drop in TKB Critical's long position.| TradeUP Acquisition vs. Inter Parfums | TradeUP Acquisition vs. Q2 Holdings | TradeUP Acquisition vs. ServiceNow | TradeUP Acquisition vs. Cadence Design Systems |
| TKB Critical vs. ClimateRock Class A | TKB Critical vs. AlphaVest Acquisition Corp | TKB Critical vs. Golden Star Acquisition | TKB Critical vs. Alpha One |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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