Correlation Between Blue Whale and Gores Holdings

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

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

Diversification Opportunities for Blue Whale and Gores Holdings

0.0

Correlation Coefficient

Blue Whale  Gores Holdings

Pay attention - limited upside

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

Pair Corralation between Blue Whale and Gores Holdings

If you would invest (100.00) in Gores Holdings IX on December 27, 2024 and sell it today you would earn a total of  100.00  from holding Gores Holdings IX or generate -100.0% return on investment over 90 days.

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

Blue Whale Acquisition  vs.  Gores Holdings IX

Blue Whale Acquisition

Risk-Adjusted Performance

Very Weak

Over the last 90 days Blue Whale Acquisition has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Blue Whale is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Gores Holdings IX

Risk-Adjusted Performance

Very Weak

Over the last 90 days Gores Holdings IX has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong forward indicators, Gores Holdings is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Blue Whale and Gores Holdings

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

The idea behind Blue Whale Acquisition and Gores Holdings IX 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.