Correlation Between ABG Acquisition and Accelerate Acquisition

Can any of the company-specific risk be diversified away by investing in both ABG Acquisition and Accelerate 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 ABG Acquisition and Accelerate Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ABG Acquisition I and Accelerate Acquisition Corp, you can compare the effects of market volatilities on ABG Acquisition and Accelerate 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 ABG Acquisition with a short position of Accelerate Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of ABG Acquisition and Accelerate Acquisition.

Diversification Opportunities for ABG Acquisition and Accelerate Acquisition

0.0

Correlation Coefficient

ABG Acquisition  Accelerate Acquisition

Pay attention - limited upside

The 3 months correlation between ABG and Accelerate is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ABG Acquisition I and Accelerate Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accelerate Acquisition and ABG 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 ABG Acquisition I are associated (or correlated) with Accelerate Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accelerate Acquisition has no effect on the direction of ABG Acquisition i.e., ABG Acquisition and Accelerate Acquisition go up and down completely randomly.

Pair Corralation between ABG Acquisition and Accelerate Acquisition

If you would invest (100.00) in Accelerate Acquisition Corp on October 22, 2024 and sell it today you would earn a total of  100.00  from holding Accelerate Acquisition Corp or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

ABG Acquisition I  vs.  Accelerate Acquisition Corp

ABG Acquisition I

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ABG Acquisition I has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong technical and fundamental indicators, ABG Acquisition is not utilizing all of its potentials. The newest stock price confusion, may contribute to short-horizon losses for the traders.

Accelerate Acquisition

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Accelerate Acquisition Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Accelerate Acquisition is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with ABG Acquisition and Accelerate Acquisition

The main advantage of trading using opposite ABG Acquisition and Accelerate Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ABG Acquisition position performs unexpectedly, Accelerate 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 Accelerate Acquisition will offset losses from the drop in Accelerate Acquisition's long position.

The idea behind ABG Acquisition I and Accelerate Acquisition Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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..