Correlation Between A SPAC and HNRA Old

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

By analyzing existing cross correlation between A SPAC II and HNRA Old, you can compare the effects of market volatilities on A SPAC and HNRA Old 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 HNRA Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of A SPAC and HNRA Old.

Diversification Opportunities for A SPAC and HNRA Old

0.0

Correlation Coefficient

A SPAC  HNRA Old

Pay attention - limited upside

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

Pair Corralation between A SPAC and HNRA Old

If you would invest  1,096  in A SPAC II on December 8, 2024 and sell it today you would earn a total of  36.00  from holding A SPAC II or generate 3.28% return on investment over 90 days.

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

A SPAC II  vs.  HNRA Old

A SPAC II

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in A SPAC II are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong fundamental indicators, A SPAC is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

HNRA Old

Risk-Adjusted Performance

Very Weak

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

Pair Trading with A SPAC and HNRA Old

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

The idea behind A SPAC II and HNRA Old 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.