Correlation Between Breeze Holdings and Accretion Acquisition

Can any of the company-specific risk be diversified away by investing in both Breeze Holdings and Accretion 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 Breeze Holdings and Accretion Acquisition 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 Accretion Acquisition Corp, you can compare the effects of market volatilities on Breeze Holdings and Accretion 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 Breeze Holdings with a short position of Accretion Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Breeze Holdings and Accretion Acquisition.

Diversification Opportunities for Breeze Holdings and Accretion Acquisition

0.0

Correlation Coefficient

Breeze Holdings  Accretion Acquisition

Pay attention - limited upside

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

Pair Corralation between Breeze Holdings and Accretion Acquisition

Assuming the 90 days horizon Breeze Holdings is expected to generate 1.91 times less return on investment than Accretion Acquisition. But when comparing it to its historical volatility, Breeze Holdings Acquisition is 1.4 times less risky than Accretion Acquisition. It trades about 0.06 of its potential returns per unit of risk. Accretion Acquisition Corp is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  11.00  in Accretion Acquisition Corp on October 25, 2024 and sell it today you would lose (3.00) from holding Accretion Acquisition Corp or give up 27.27% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	75.65%
Values	Daily Returns

Breeze Holdings Acquisition  vs.  Accretion Acquisition Corp

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.

Accretion Acquisition

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Breeze Holdings and Accretion Acquisition

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

The idea behind Breeze Holdings Acquisition and Accretion 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.

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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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.