Correlation Between Embark Technology and Grab Holdings

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

By analyzing existing cross correlation between Embark Technology Warrants and Grab Holdings Limited, you can compare the effects of market volatilities on Embark Technology and Grab 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 Embark Technology with a short position of Grab Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Embark Technology and Grab Holdings.

Diversification Opportunities for Embark Technology and Grab Holdings

0.0

Correlation Coefficient

Embark Technology  Grab Holdings

Pay attention - limited upside

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

Pair Corralation between Embark Technology and Grab Holdings

If you would invest  42.00  in Grab Holdings Limited on December 19, 2024 and sell it today you would earn a total of  6.00  from holding Grab Holdings Limited or generate 14.29% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Embark Technology Warrants  vs.  Grab Holdings Limited

Embark Technology

Risk-Adjusted Performance

Very Weak

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

Grab Holdings Limited

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Grab Holdings Limited are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak fundamental drivers, Grab Holdings showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Embark Technology and Grab Holdings

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

The idea behind Embark Technology Warrants and Grab Holdings Limited 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..