Correlation Between Keyarch Acquisition and A SPAC

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

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

Diversification Opportunities for Keyarch Acquisition and A SPAC

0.0

Correlation Coefficient

Keyarch Acquisition  A SPAC

Pay attention - limited upside

The 3 months correlation between Keyarch and ASCB is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Keyarch Acquisition and A SPAC II in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on A SPAC II and Keyarch Acquisition 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 Keyarch Acquisition are associated (or correlated) with A SPAC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of A SPAC II has no effect on the direction of Keyarch Acquisition i.e., Keyarch Acquisition and A SPAC go up and down completely randomly.

Pair Corralation between Keyarch Acquisition and A SPAC

If you would invest  1,097  in A SPAC II on December 28, 2024 and sell it today you would earn a total of  13.00  from holding A SPAC II or generate 1.19% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Keyarch Acquisition  vs.  A SPAC II

Keyarch Acquisition

Risk-Adjusted Performance

Very Weak

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

A SPAC II

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in A SPAC II are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong fundamental indicators, A SPAC is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Keyarch Acquisition and A SPAC

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

The idea behind Keyarch Acquisition and A SPAC II 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.