Correlation Between Growth For and Blue World
Can any of the company-specific risk be diversified away by investing in both Growth For and Blue World 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 Growth For and Blue World into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Growth For Good and Blue World Acquisition, you can compare the effects of market volatilities on Growth For and Blue World 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 Growth For with a short position of Blue World. Check out your portfolio center. Please also check ongoing floating volatility patterns of Growth For and Blue World.
Diversification Opportunities for Growth For and Blue World
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Growth and Blue is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Growth For Good and Blue World Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue World Acquisition and Growth For 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 Growth For Good are associated (or correlated) with Blue World. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue World Acquisition has no effect on the direction of Growth For i.e., Growth For and Blue World go up and down completely randomly.
Pair Corralation between Growth For and Blue World
Given the investment horizon of 90 days Growth For Good is expected to generate 0.04 times more return on investment than Blue World. However, Growth For Good is 26.17 times less risky than Blue World. It trades about 0.18 of its potential returns per unit of risk. Blue World Acquisition is currently generating about -0.03 per unit of risk. If you would invest 1,001 in Growth For Good on September 6, 2024 and sell it today you would earn a total of 46.00 from holding Growth For Good or generate 4.6% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 38.01% |
Values | Daily Returns |
Growth For Good vs. Blue World Acquisition
Performance |
Timeline |
Growth For Good |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Blue World Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Growth For and Blue World Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Growth For and Blue World
The main advantage of trading using opposite Growth For and Blue World positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Growth For position performs unexpectedly, Blue World 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 Blue World will offset losses from the drop in Blue World's long position.Growth For vs. Finnovate Acquisition Corp | Growth For vs. Broad Capital Acquisition | Growth For vs. Welsbach Technology Metals | Growth For vs. Gores Holdings IX |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation |