Correlation Between AMODW and Cohen Circle
Can any of the company-specific risk be diversified away by investing in both AMODW and Cohen Circle 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 AMODW and Cohen Circle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AMODW and Cohen Circle Acquisition, you can compare the effects of market volatilities on AMODW and Cohen Circle 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 AMODW with a short position of Cohen Circle. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMODW and Cohen Circle.
Diversification Opportunities for AMODW and Cohen Circle
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AMODW and Cohen is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding AMODW and Cohen Circle Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Circle Acquisition and AMODW 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 AMODW are associated (or correlated) with Cohen Circle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cohen Circle Acquisition has no effect on the direction of AMODW i.e., AMODW and Cohen Circle go up and down completely randomly.
Pair Corralation between AMODW and Cohen Circle
Assuming the 90 days horizon AMODW is expected to generate 125.96 times more return on investment than Cohen Circle. However, AMODW is 125.96 times more volatile than Cohen Circle Acquisition. It trades about 0.12 of its potential returns per unit of risk. Cohen Circle Acquisition is currently generating about 0.08 per unit of risk. If you would invest 5.60 in AMODW on October 11, 2024 and sell it today you would earn a total of 0.40 from holding AMODW or generate 7.14% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 27.42% |
Values | Daily Returns |
AMODW vs. Cohen Circle Acquisition
Performance |
Timeline |
AMODW |
Cohen Circle Acquisition |
AMODW and Cohen Circle Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with AMODW and Cohen Circle
The main advantage of trading using opposite AMODW and Cohen Circle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMODW position performs unexpectedly, Cohen Circle 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 Cohen Circle will offset losses from the drop in Cohen Circle's long position.AMODW vs. Distoken Acquisition | AMODW vs. Voyager Acquisition Corp | AMODW vs. dMY Squared Technology | AMODW vs. CO2 Energy Transition |
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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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