Correlation Between Acri Capital and CONX Corp

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

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

Diversification Opportunities for Acri Capital and CONX Corp

0.0

Correlation Coefficient

Acri Capital  CONX Corp

Pay attention - limited upside

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

Pair Corralation between Acri Capital and CONX Corp

Assuming the 90 days horizon Acri Capital Acquisition is expected to generate 8.89 times more return on investment than CONX Corp. However, Acri Capital is 8.89 times more volatile than CONX Corp. It trades about 0.04 of its potential returns per unit of risk. CONX Corp is currently generating about 0.12 per unit of risk. If you would invest  1,024  in Acri Capital Acquisition on October 13, 2024 and sell it today you would earn a total of  270.00  from holding Acri Capital Acquisition or generate 26.37% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	29.72%
Values	Daily Returns

Acri Capital Acquisition  vs.  CONX Corp

Acri Capital Acquisition

Risk-Adjusted Performance

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Very Weak

Over the last 90 days Acri Capital Acquisition has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable fundamental indicators, Acri Capital is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

CONX Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CONX Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, CONX Corp is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Acri Capital and CONX Corp

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

The idea behind Acri Capital Acquisition and CONX 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.