Correlation Between Breeze Holdings and Clover Leaf

Can any of the company-specific risk be diversified away by investing in both Breeze Holdings and Clover Leaf 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 Breeze Holdings and Clover Leaf into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Breeze Holdings and Clover Leaf

0.3

Correlation Coefficient

Breeze Holdings  Clover Leaf

Weak diversification

The 3 months correlation between Breeze and Clover is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Breeze Holdings Acquisition and Clover Leaf Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clover Leaf Capital and Breeze Holdings 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 Breeze Holdings Acquisition are associated (or correlated) with Clover Leaf. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clover Leaf Capital has no effect on the direction of Breeze Holdings i.e., Breeze Holdings and Clover Leaf go up and down completely randomly.

Pair Corralation between Breeze Holdings and Clover Leaf

Assuming the 90 days horizon Breeze Holdings Acquisition is expected to generate 7.74 times more return on investment than Clover Leaf. However, Breeze Holdings is 7.74 times more volatile than Clover Leaf Capital. It trades about 0.06 of its potential returns per unit of risk. Clover Leaf Capital is currently generating about 0.04 per unit of risk. If you would invest  15.00  in Breeze Holdings Acquisition on October 11, 2024 and sell it today you would lose (4.00) from holding Breeze Holdings Acquisition or give up 26.67% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	30.24%
Values	Daily Returns

Breeze Holdings Acquisition  vs.  Clover Leaf Capital

Breeze Holdings Acqu

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Breeze Holdings Acquisition has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Breeze Holdings is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Clover Leaf Capital

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Breeze Holdings and Clover Leaf

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

The idea behind Breeze Holdings Acquisition and Clover Leaf Capital 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..