Correlation Between Newcourt Acquisition and Project Energy

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Newcourt Acquisition and Project Energy 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 Newcourt Acquisition and Project Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Newcourt Acquisition Corp and Project Energy Reimagined, you can compare the effects of market volatilities on Newcourt Acquisition and Project Energy 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 Newcourt Acquisition with a short position of Project Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newcourt Acquisition and Project Energy.

Diversification Opportunities for Newcourt Acquisition and Project Energy

-0.32
  Correlation Coefficient

Very good diversification

The 3 months correlation between Newcourt and Project is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Newcourt Acquisition Corp and Project Energy Reimagined in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Project Energy Reimagined and Newcourt 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 Newcourt Acquisition Corp are associated (or correlated) with Project Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Project Energy Reimagined has no effect on the direction of Newcourt Acquisition i.e., Newcourt Acquisition and Project Energy go up and down completely randomly.

Pair Corralation between Newcourt Acquisition and Project Energy

Given the investment horizon of 90 days Newcourt Acquisition Corp is expected to generate 0.04 times more return on investment than Project Energy. However, Newcourt Acquisition Corp is 26.94 times less risky than Project Energy. It trades about 0.19 of its potential returns per unit of risk. Project Energy Reimagined is currently generating about -0.05 per unit of risk. If you would invest  1,036  in Newcourt Acquisition Corp on October 4, 2024 and sell it today you would earn a total of  64.00  from holding Newcourt Acquisition Corp or generate 6.18% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy33.42%
ValuesDaily Returns

Newcourt Acquisition Corp  vs.  Project Energy Reimagined

 Performance 
       Timeline  
Newcourt Acquisition Corp 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Newcourt Acquisition Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Newcourt Acquisition is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.
Project Energy Reimagined 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Project Energy Reimagined has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable technical and fundamental indicators, Project Energy is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Newcourt Acquisition and Project Energy Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Newcourt Acquisition and Project Energy

The main advantage of trading using opposite Newcourt Acquisition and Project Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newcourt Acquisition position performs unexpectedly, Project Energy 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 Project Energy will offset losses from the drop in Project Energy's long position.
The idea behind Newcourt Acquisition Corp and Project Energy Reimagined 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.

Other Complementary Tools

Technical Analysis
Check basic technical indicators and analysis based on most latest market data
USA ETFs
Find actively traded Exchange Traded Funds (ETF) in USA
Money Managers
Screen money managers from public funds and ETFs managed around the world
Portfolio Backtesting
Avoid under-diversification and over-optimization by backtesting your portfolios
Investing Opportunities
Build portfolios using our predefined set of ideas and optimize them against your investing preferences