Correlation Between Accretion Acquisition and Bleuacacia

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

By analyzing existing cross correlation between Accretion Acquisition Corp and Bleuacacia Ltd Rights, you can compare the effects of market volatilities on Accretion Acquisition and Bleuacacia 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 Accretion Acquisition with a short position of Bleuacacia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Accretion Acquisition and Bleuacacia.

Diversification Opportunities for Accretion Acquisition and Bleuacacia

0.3

Correlation Coefficient

Accretion Acquisition  Bleuacacia

Weak diversification

The 3 months correlation between Accretion and Bleuacacia is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Accretion Acquisition Corp and Bleuacacia Ltd Rights in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bleuacacia Rights and Accretion Acquisition 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 Accretion Acquisition Corp are associated (or correlated) with Bleuacacia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bleuacacia Rights has no effect on the direction of Accretion Acquisition i.e., Accretion Acquisition and Bleuacacia go up and down completely randomly.

Pair Corralation between Accretion Acquisition and Bleuacacia

If you would invest  6.35  in Bleuacacia Ltd Rights on October 9, 2024 and sell it today you would lose (5.50) from holding Bleuacacia Ltd Rights or give up 86.61% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	0.74%
Values	Daily Returns

Accretion Acquisition Corp  vs.  Bleuacacia Ltd Rights

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. In spite of fairly stable basic indicators, Accretion Acquisition is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Bleuacacia Rights

Risk-Adjusted Performance

0 of 100

OK

Over the last 90 days Bleuacacia Ltd Rights has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively abnormal basic indicators, Bleuacacia reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Accretion Acquisition and Bleuacacia

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

The idea behind Accretion Acquisition Corp and Bleuacacia Ltd Rights 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.

Check out your portfolio center.

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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.