Correlation Between Jaws Juggernaut and GAMC Old

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

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

Diversification Opportunities for Jaws Juggernaut and GAMC Old

-0.41

Correlation Coefficient

Jaws Juggernaut  GAMC Old

Very good diversification

The 3 months correlation between Jaws and GAMC is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Jaws Juggernaut Acquisition and GAMC Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GAMC Old and Jaws Juggernaut 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 Juggernaut Acquisition are associated (or correlated) with GAMC Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GAMC Old has no effect on the direction of Jaws Juggernaut i.e., Jaws Juggernaut and GAMC Old go up and down completely randomly.

Pair Corralation between Jaws Juggernaut and GAMC Old

If you would invest (100.00) in GAMC Old on October 10, 2024 and sell it today you would earn a total of  100.00  from holding GAMC Old or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	0.0%
Values	Daily Returns

Jaws Juggernaut Acquisition  vs.  GAMC Old

Jaws Juggernaut Acqu

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Jaws Juggernaut Acquisition has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, Jaws Juggernaut is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

GAMC Old

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days GAMC Old has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound primary indicators, GAMC Old is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Jaws Juggernaut and GAMC Old

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

The idea behind Jaws Juggernaut Acquisition and GAMC Old 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.