Correlation Between GiveMePower Corp and Perella Weinberg

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

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

Diversification Opportunities for GiveMePower Corp and Perella Weinberg

-0.57

Correlation Coefficient

GiveMePower Corp  Perella Weinberg

Excellent diversification

The 3 months correlation between GiveMePower and Perella is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding GiveMePower Corp and Perella Weinberg Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perella Weinberg Partners and GiveMePower Corp 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 GiveMePower Corp are associated (or correlated) with Perella Weinberg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Perella Weinberg Partners has no effect on the direction of GiveMePower Corp i.e., GiveMePower Corp and Perella Weinberg go up and down completely randomly.

Pair Corralation between GiveMePower Corp and Perella Weinberg

Given the investment horizon of 90 days GiveMePower Corp is expected to generate 14.02 times more return on investment than Perella Weinberg. However, GiveMePower Corp is 14.02 times more volatile than Perella Weinberg Partners. It trades about 0.24 of its potential returns per unit of risk. Perella Weinberg Partners is currently generating about -0.13 per unit of risk. If you would invest  0.47  in GiveMePower Corp on October 11, 2024 and sell it today you would earn a total of  0.51  from holding GiveMePower Corp or generate 108.51% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

GiveMePower Corp  vs.  Perella Weinberg Partners

GiveMePower Corp

Risk-Adjusted Performance

5 of 100

Modest

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

Perella Weinberg Partners

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Perella Weinberg Partners are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Perella Weinberg may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with GiveMePower Corp and Perella Weinberg

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

The idea behind GiveMePower Corp and Perella Weinberg Partners 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.