Correlation Between Cetus Capital and LGST Old

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

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

Diversification Opportunities for Cetus Capital and LGST Old

-0.01

Correlation Coefficient

Cetus Capital  LGST Old

Good diversification

The 3 months correlation between Cetus and LGST is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Cetus Capital Acquisition and LGST Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LGST Old and Cetus 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 Cetus Capital Acquisition are associated (or correlated) with LGST Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LGST Old has no effect on the direction of Cetus Capital i.e., Cetus Capital and LGST Old go up and down completely randomly.

Pair Corralation between Cetus Capital and LGST Old

If you would invest  1,052  in Cetus Capital Acquisition on October 12, 2024 and sell it today you would earn a total of  89.00  from holding Cetus Capital Acquisition or generate 8.46% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	1.3%
Values	Daily Returns

Cetus Capital Acquisition  vs.  LGST Old

Cetus Capital Acquisition

Risk-Adjusted Performance

0 of 100

Very Weak

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

LGST Old

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Cetus Capital and LGST Old

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

The idea behind Cetus Capital Acquisition and LGST Old 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.