Correlation Between Churchill Capital and Senior Connect

Can any of the company-specific risk be diversified away by investing in both Churchill Capital and Senior Connect 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 Churchill Capital and Senior Connect into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Churchill Capital and Senior Connect

0.08

Correlation Coefficient

Churchill Capital  Senior Connect

Significant diversification

The 3 months correlation between Churchill and Senior is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Churchill Capital VI and Senior Connect Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Senior Connect Acqui and Churchill Capital 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 Churchill Capital VI are associated (or correlated) with Senior Connect. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Senior Connect Acqui has no effect on the direction of Churchill Capital i.e., Churchill Capital and Senior Connect go up and down completely randomly.

Pair Corralation between Churchill Capital and Senior Connect

If you would invest  1,004  in Senior Connect Acquisition on September 30, 2024 and sell it today you would earn a total of  0.00  from holding Senior Connect 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

Churchill Capital VI  vs.  Senior Connect Acquisition

Churchill Capital

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Churchill Capital VI has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Churchill Capital is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Senior Connect Acqui

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Senior Connect Acquisition has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Senior Connect is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Churchill Capital and Senior Connect

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

The idea behind Churchill Capital VI and Senior Connect 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 Stocks Directory module to find actively traded stocks across global markets.