Correlation Between A SPAC and WinVest Acquisition

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

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

Diversification Opportunities for A SPAC and WinVest Acquisition

0.0

Correlation Coefficient

A SPAC  WinVest Acquisition

Pay attention - limited upside

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

Pair Corralation between A SPAC and WinVest Acquisition

If you would invest  1,191  in WinVest Acquisition Corp on December 4, 2024 and sell it today you would earn a total of  99.00  from holding WinVest Acquisition Corp or generate 8.31% return on investment over 90 days.

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

A SPAC I  vs.  WinVest Acquisition Corp

A SPAC I

Risk-Adjusted Performance

Very Weak

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

WinVest Acquisition Corp

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in WinVest Acquisition Corp are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, WinVest Acquisition may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with A SPAC and WinVest Acquisition

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

The idea behind A SPAC I and WinVest 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.

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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.