Correlation Between TKB Critical and ClimateRock
Can any of the company-specific risk be diversified away by investing in both TKB Critical and ClimateRock 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 TKB Critical and ClimateRock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TKB Critical Technologies and ClimateRock Class A, you can compare the effects of market volatilities on TKB Critical and ClimateRock 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 TKB Critical with a short position of ClimateRock. Check out your portfolio center. Please also check ongoing floating volatility patterns of TKB Critical and ClimateRock.
Diversification Opportunities for TKB Critical and ClimateRock
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between TKB and ClimateRock is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding TKB Critical Technologies and ClimateRock Class A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ClimateRock Class and TKB Critical 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 TKB Critical Technologies are associated (or correlated) with ClimateRock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ClimateRock Class has no effect on the direction of TKB Critical i.e., TKB Critical and ClimateRock go up and down completely randomly.
Pair Corralation between TKB Critical and ClimateRock
Given the investment horizon of 90 days TKB Critical is expected to generate 6.17 times less return on investment than ClimateRock. But when comparing it to its historical volatility, TKB Critical Technologies is 2.01 times less risky than ClimateRock. It trades about 0.02 of its potential returns per unit of risk. ClimateRock Class A is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,020 in ClimateRock Class A on October 25, 2024 and sell it today you would earn a total of 170.02 from holding ClimateRock Class A or generate 16.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 23.68% |
| Values | Daily Returns |
TKB Critical Technologies vs. ClimateRock Class A
Performance |
| Timeline |
| TKB Critical Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| ClimateRock Class |
TKB Critical and ClimateRock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TKB Critical and ClimateRock
The main advantage of trading using opposite TKB Critical and ClimateRock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TKB Critical position performs unexpectedly, ClimateRock 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 ClimateRock will offset losses from the drop in ClimateRock's long position.| TKB Critical vs. ClimateRock Class A | TKB Critical vs. AlphaVest Acquisition Corp | TKB Critical vs. Golden Star Acquisition | TKB Critical vs. Alpha One |
| ClimateRock vs. AlphaVest Acquisition Corp | ClimateRock vs. Golden Star Acquisition | ClimateRock vs. Alpha One | ClimateRock 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 CEOs Directory module to screen CEOs from public companies around the world.
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