Correlation Between ACAB Old and Atlantic Coastal

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

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

Diversification Opportunities for ACAB Old and Atlantic Coastal

0.0

Correlation Coefficient

ACAB Old  Atlantic Coastal

Pay attention - limited upside

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

Pair Corralation between ACAB Old and Atlantic Coastal

If you would invest (100.00) in Atlantic Coastal Acquisition on December 20, 2024 and sell it today you would earn a total of  100.00  from holding Atlantic Coastal Acquisition or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

ACAB Old  vs.  Atlantic Coastal Acquisition

ACAB Old

Risk-Adjusted Performance

Very Weak

Over the last 90 days ACAB Old has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, ACAB Old is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Atlantic Coastal Acq

Risk-Adjusted Performance

Very Weak

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

Pair Trading with ACAB Old and Atlantic Coastal

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

The idea behind ACAB Old and Atlantic Coastal Acquisition 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.