Correlation Between New York and Concord Acquisition

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

By analyzing existing cross correlation between New York City and Concord Acquisition Corp, you can compare the effects of market volatilities on New York and Concord Acquisition 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 New York with a short position of Concord Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of New York and Concord Acquisition.

Diversification Opportunities for New York and Concord Acquisition

0.12

Correlation Coefficient

New York  Concord Acquisition

Average diversification

The 3 months correlation between New and Concord is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding New York City and Concord Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Concord Acquisition Corp and New York 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 New York City are associated (or correlated) with Concord Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Concord Acquisition Corp has no effect on the direction of New York i.e., New York and Concord Acquisition go up and down completely randomly.

Pair Corralation between New York and Concord Acquisition

Considering the 90-day investment horizon New York City is expected to generate 0.05 times more return on investment than Concord Acquisition. However, New York City is 21.77 times less risky than Concord Acquisition. It trades about -0.05 of its potential returns per unit of risk. Concord Acquisition Corp is currently generating about -0.6 per unit of risk. If you would invest  957.00  in New York City on September 3, 2024 and sell it today you would lose (97.00) from holding New York City or give up 10.14% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	4.69%
Values	Daily Returns

New York City  vs.  Concord Acquisition Corp

New York City

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days New York City has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest inconsistent performance, the Etf's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the fund shareholders.

Concord Acquisition Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Concord Acquisition Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Etf's fundamental indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the ETF investors.

Pair Trading with New York and Concord Acquisition

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

The idea behind New York City and Concord Acquisition 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.

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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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.