Correlation Between Latamgrowth SPAC and Lionsgate Studios

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

By analyzing existing cross correlation between Latamgrowth SPAC Unit and Lionsgate Studios Corp, you can compare the effects of market volatilities on Latamgrowth SPAC and Lionsgate Studios 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 Latamgrowth SPAC with a short position of Lionsgate Studios. Check out your portfolio center. Please also check ongoing floating volatility patterns of Latamgrowth SPAC and Lionsgate Studios.

Diversification Opportunities for Latamgrowth SPAC and Lionsgate Studios

0.0

Correlation Coefficient

Latamgrowth SPAC  Lionsgate Studios

Pay attention - limited upside

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

Pair Corralation between Latamgrowth SPAC and Lionsgate Studios

If you would invest  702.00  in Lionsgate Studios Corp on December 24, 2024 and sell it today you would earn a total of  96.00  from holding Lionsgate Studios Corp or generate 13.68% return on investment over 90 days.

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

Latamgrowth SPAC Unit  vs.  Lionsgate Studios Corp

Latamgrowth SPAC Unit

Risk-Adjusted Performance

Very Weak

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

Lionsgate Studios Corp

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Lionsgate Studios Corp are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain basic indicators, Lionsgate Studios displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Latamgrowth SPAC and Lionsgate Studios

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

The idea behind Latamgrowth SPAC Unit and Lionsgate Studios 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.

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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.