Correlation Between WinVest Acquisition and Xos Equity
Can any of the company-specific risk be diversified away by investing in both WinVest Acquisition and Xos Equity 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 WinVest Acquisition and Xos Equity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WinVest Acquisition Corp and Xos Equity Warrants, you can compare the effects of market volatilities on WinVest Acquisition and Xos Equity 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 WinVest Acquisition with a short position of Xos Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of WinVest Acquisition and Xos Equity.
Diversification Opportunities for WinVest Acquisition and Xos Equity
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between WinVest and Xos is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding WinVest Acquisition Corp and Xos Equity Warrants in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xos Equity Warrants and WinVest 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 WinVest Acquisition Corp are associated (or correlated) with Xos Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xos Equity Warrants has no effect on the direction of WinVest Acquisition i.e., WinVest Acquisition and Xos Equity go up and down completely randomly.
Pair Corralation between WinVest Acquisition and Xos Equity
Given the investment horizon of 90 days WinVest Acquisition Corp is expected to generate 0.02 times more return on investment than Xos Equity. However, WinVest Acquisition Corp is 53.39 times less risky than Xos Equity. It trades about 0.15 of its potential returns per unit of risk. Xos Equity Warrants is currently generating about -0.3 per unit of risk. If you would invest 1,173 in WinVest Acquisition Corp on September 3, 2024 and sell it today you would earn a total of 13.00 from holding WinVest Acquisition Corp or generate 1.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
WinVest Acquisition Corp vs. Xos Equity Warrants
Performance |
| Timeline |
| WinVest Acquisition Corp |
| Xos Equity Warrants |
WinVest Acquisition and Xos Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WinVest Acquisition and Xos Equity
The main advantage of trading using opposite WinVest Acquisition and Xos Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WinVest Acquisition position performs unexpectedly, Xos Equity 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 Xos Equity will offset losses from the drop in Xos Equity's long position.| WinVest Acquisition vs. Alpha One | WinVest Acquisition vs. Manaris Corp | WinVest Acquisition vs. SCOR PK | WinVest Acquisition vs. Aquagold International |
| Xos Equity vs. Microvast Holdings | Xos Equity vs. EVgo Equity Warrants | Xos Equity vs. Faraday Future Intelligent | Xos Equity vs. Xos Inc |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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