Correlation Between Graf Global and Voyager Acquisition

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

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

Diversification Opportunities for Graf Global and Voyager Acquisition

0.19

Correlation Coefficient

Graf Global  Voyager Acquisition

Average diversification

The 3 months correlation between Graf and Voyager is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Graf Global Corp and Voyager Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voyager Acquisition Corp and Graf Global 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 Graf Global Corp are associated (or correlated) with Voyager Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voyager Acquisition Corp has no effect on the direction of Graf Global i.e., Graf Global and Voyager Acquisition go up and down completely randomly.

Pair Corralation between Graf Global and Voyager Acquisition

Given the investment horizon of 90 days Graf Global Corp is expected to generate 1.3 times more return on investment than Voyager Acquisition. However, Graf Global is 1.3 times more volatile than Voyager Acquisition Corp. It trades about 0.07 of its potential returns per unit of risk. Voyager Acquisition Corp is currently generating about 0.09 per unit of risk. If you would invest  999.00  in Graf Global Corp on September 17, 2024 and sell it today you would earn a total of  9.00  from holding Graf Global Corp or generate 0.9% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	85.94%
Values	Daily Returns

Graf Global Corp  vs.  Voyager Acquisition Corp

Graf Global Corp

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Graf Global Corp are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Graf Global is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Voyager Acquisition Corp

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Voyager Acquisition Corp are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong fundamental indicators, Voyager Acquisition is not utilizing all of its potentials. The newest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Graf Global and Voyager Acquisition

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

The idea behind Graf Global Corp and Voyager 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.