Correlation Between Associated Capital and Cartica Acquisition
Can any of the company-specific risk be diversified away by investing in both Associated Capital and Cartica 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 Associated Capital and Cartica Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Associated Capital Group and Cartica Acquisition Corp, you can compare the effects of market volatilities on Associated Capital and Cartica 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 Associated Capital with a short position of Cartica Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Associated Capital and Cartica Acquisition.
Diversification Opportunities for Associated Capital and Cartica Acquisition
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Associated and Cartica is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Associated Capital Group and Cartica Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cartica Acquisition Corp and Associated Capital 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 Associated Capital Group are associated (or correlated) with Cartica Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cartica Acquisition Corp has no effect on the direction of Associated Capital i.e., Associated Capital and Cartica Acquisition go up and down completely randomly.
Pair Corralation between Associated Capital and Cartica Acquisition
If you would invest 3,498 in Associated Capital Group on December 2, 2024 and sell it today you would earn a total of 228.00 from holding Associated Capital Group or generate 6.52% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Associated Capital Group vs. Cartica Acquisition Corp
Performance |
Timeline |
Associated Capital |
Cartica Acquisition Corp |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Associated Capital and Cartica Acquisition Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Associated Capital and Cartica Acquisition
The main advantage of trading using opposite Associated Capital and Cartica Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Associated Capital position performs unexpectedly, Cartica 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 Cartica Acquisition will offset losses from the drop in Cartica Acquisition's long position.Associated Capital vs. Abrdn Emerging Markets | Associated Capital vs. DWS Municipal Income | Associated Capital vs. Blackrock Muni Intermediate | Associated Capital vs. Blackrock Muniyield |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
Equity Valuation Check real value of public entities based on technical and fundamental data | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |