Correlation Between BaringtonHilco Acquisition and Mountain I

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

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

Diversification Opportunities for BaringtonHilco Acquisition and Mountain I

0.14

Correlation Coefficient

BaringtonHilco Acquisition  Mountain I

Average diversification

The 3 months correlation between BaringtonHilco and Mountain is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding BaringtonHilco Acquisition and Mountain I Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mountain I Acquisition and BaringtonHilco Acquisition 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 BaringtonHilco Acquisition are associated (or correlated) with Mountain I. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mountain I Acquisition has no effect on the direction of BaringtonHilco Acquisition i.e., BaringtonHilco Acquisition and Mountain I go up and down completely randomly.

Pair Corralation between BaringtonHilco Acquisition and Mountain I

If you would invest  1,139  in Mountain I Acquisition on October 11, 2024 and sell it today you would earn a total of  0.00  from holding Mountain I Acquisition or generate 0.0% return on investment over 90 days.

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

BaringtonHilco Acquisition  vs.  Mountain I Acquisition

BaringtonHilco Acquisition

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days BaringtonHilco Acquisition has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in February 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Mountain I Acquisition

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Mountain I Acquisition has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with BaringtonHilco Acquisition and Mountain I

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

The idea behind BaringtonHilco Acquisition and Mountain I 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .