Correlation Between Jaws Hurricane and L Catterton
Can any of the company-specific risk be diversified away by investing in both Jaws Hurricane and L Catterton 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 Jaws Hurricane and L Catterton into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jaws Hurricane Acquisition and L Catterton Asia, you can compare the effects of market volatilities on Jaws Hurricane and L Catterton 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 Jaws Hurricane with a short position of L Catterton. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jaws Hurricane and L Catterton.
Diversification Opportunities for Jaws Hurricane and L Catterton
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Jaws and LCAAW is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Jaws Hurricane Acquisition and L Catterton Asia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on L Catterton Asia and Jaws Hurricane 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 Jaws Hurricane Acquisition are associated (or correlated) with L Catterton. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of L Catterton Asia has no effect on the direction of Jaws Hurricane i.e., Jaws Hurricane and L Catterton go up and down completely randomly.
Pair Corralation between Jaws Hurricane and L Catterton
If you would invest (100.00) in L Catterton Asia on December 5, 2024 and sell it today you would earn a total of 100.00 from holding L Catterton Asia or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Jaws Hurricane Acquisition vs. L Catterton Asia
Performance |
Timeline |
Jaws Hurricane Acqui |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
L Catterton Asia |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Jaws Hurricane and L Catterton Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jaws Hurricane and L Catterton
The main advantage of trading using opposite Jaws Hurricane and L Catterton positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jaws Hurricane position performs unexpectedly, L Catterton 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 L Catterton will offset losses from the drop in L Catterton's long position.Jaws Hurricane vs. Compania Cervecerias Unidas | Jaws Hurricane vs. Vita Coco | Jaws Hurricane vs. PennantPark Investment | Jaws Hurricane vs. Suntory Beverage Food |
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.
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