Correlation Between Aetherium Acquisition and Plum Acquisition

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

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

Diversification Opportunities for Aetherium Acquisition and Plum Acquisition

0.0

Correlation Coefficient

Aetherium Acquisition  Plum Acquisition

Pay attention - limited upside

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

Pair Corralation between Aetherium Acquisition and Plum Acquisition

If you would invest (100.00) in Aetherium Acquisition Corp on December 28, 2024 and sell it today you would earn a total of  100.00  from holding Aetherium Acquisition Corp or generate -100.0% return on investment over 90 days.

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

Aetherium Acquisition Corp  vs.  Plum Acquisition Corp

Aetherium Acquisition

Risk-Adjusted Performance

Very Weak

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

Plum Acquisition Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Plum Acquisition Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's forward-looking indicators remain fairly stable which may send shares a bit higher in April 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with Aetherium Acquisition and Plum Acquisition

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

The idea behind Aetherium Acquisition Corp and Plum Acquisition Corp 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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.