Correlation Between Iris Energy and AlphaVest Acquisition

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

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

Diversification Opportunities for Iris Energy and AlphaVest Acquisition

0.26

Correlation Coefficient

Iris Energy  AlphaVest Acquisition

Modest diversification

The 3 months correlation between Iris and AlphaVest is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Iris Energy and AlphaVest Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AlphaVest Acquisition and Iris Energy 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 Iris Energy are associated (or correlated) with AlphaVest Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AlphaVest Acquisition has no effect on the direction of Iris Energy i.e., Iris Energy and AlphaVest Acquisition go up and down completely randomly.

Pair Corralation between Iris Energy and AlphaVest Acquisition

Given the investment horizon of 90 days Iris Energy is expected to under-perform the AlphaVest Acquisition. In addition to that, Iris Energy is 10.44 times more volatile than AlphaVest Acquisition Corp. It trades about -0.09 of its total potential returns per unit of risk. AlphaVest Acquisition Corp is currently generating about 0.0 per unit of volatility. If you would invest  1,131  in AlphaVest Acquisition Corp on December 28, 2024 and sell it today you would earn a total of  0.00  from holding AlphaVest Acquisition Corp or generate 0.0% return on investment over 90 days.

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

Iris Energy  vs.  AlphaVest Acquisition Corp

Iris Energy

Risk-Adjusted Performance

Very Weak

Over the last 90 days Iris Energy has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's technical and fundamental indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

AlphaVest Acquisition

Risk-Adjusted Performance

Very Weak

Over the last 90 days AlphaVest Acquisition Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, AlphaVest Acquisition is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Iris Energy and AlphaVest Acquisition

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

The idea behind Iris Energy and AlphaVest 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.