Correlation Between WINVEST ACQUISITION and International Media
Can any of the company-specific risk be diversified away by investing in both WINVEST ACQUISITION and International Media 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 International Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WINVEST ACQUISITION P and International Media Acquisition, you can compare the effects of market volatilities on WINVEST ACQUISITION and International Media 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 International Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of WINVEST ACQUISITION and International Media.
Diversification Opportunities for WINVEST ACQUISITION and International Media
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between WINVEST and International is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding WINVEST ACQUISITION P and International Media Acquisitio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Media 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 P are associated (or correlated) with International Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Media has no effect on the direction of WINVEST ACQUISITION i.e., WINVEST ACQUISITION and International Media go up and down completely randomly.
Pair Corralation between WINVEST ACQUISITION and International Media
Assuming the 90 days horizon WINVEST ACQUISITION P is expected to generate 2.67 times more return on investment than International Media. However, WINVEST ACQUISITION is 2.67 times more volatile than International Media Acquisition. It trades about 0.27 of its potential returns per unit of risk. International Media Acquisition is currently generating about 0.11 per unit of risk. If you would invest 0.97 in WINVEST ACQUISITION P on September 1, 2024 and sell it today you would lose (0.97) from holding WINVEST ACQUISITION P or give up 100.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 79.25% |
| Values | Daily Returns |
WINVEST ACQUISITION P vs. International Media Acquisitio
Performance |
| Timeline |
| WINVEST ACQUISITION |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| International Media |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
WINVEST ACQUISITION and International Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WINVEST ACQUISITION and International Media
The main advantage of trading using opposite WINVEST ACQUISITION and International Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WINVEST ACQUISITION position performs unexpectedly, International Media 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 International Media will offset losses from the drop in International Media's long position.| WINVEST ACQUISITION vs. WinVest Acquisition Corp | WINVEST ACQUISITION vs. Waldencast Acquisition Corp | WINVEST ACQUISITION vs. Xos Equity Warrants |
| International Media vs. Plexus Corp | International Media vs. Sweetgreen | International Media vs. Mind Technology | International Media vs. The Cheesecake Factory |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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