Correlation Between Noble Rock and Cartesian Growth

Can any of the company-specific risk be diversified away by investing in both Noble Rock and Cartesian Growth 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 Noble Rock and Cartesian Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Noble Rock and Cartesian Growth

0.0

Correlation Coefficient

Noble Rock  Cartesian Growth

Pay attention - limited upside

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

Pair Corralation between Noble Rock and Cartesian Growth

If you would invest  4.40  in Noble Rock Acquisition on October 26, 2024 and sell it today you would earn a total of  0.00  from holding Noble Rock Acquisition or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.67%
Values	Daily Returns

Noble Rock Acquisition  vs.  Cartesian Growth

Noble Rock Acquisition

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Noble Rock Acquisition has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable fundamental indicators, Noble Rock is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Cartesian Growth

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cartesian Growth has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's technical and fundamental indicators remain fairly stable which may send shares a bit higher in February 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with Noble Rock and Cartesian Growth

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

The idea behind Noble Rock Acquisition and Cartesian Growth 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 Transaction History module to view history of all your transactions and understand their impact on performance.