Correlation Between OCA Acquisition and TLGY Acquisition

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

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

Diversification Opportunities for OCA Acquisition and TLGY Acquisition

-0.4

Correlation Coefficient

OCA Acquisition  TLGY Acquisition

Very good diversification

The 3 months correlation between OCA and TLGY is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding OCA Acquisition Corp and TLGY Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TLGY Acquisition Corp and OCA 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 OCA Acquisition Corp are associated (or correlated) with TLGY Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TLGY Acquisition Corp has no effect on the direction of OCA Acquisition i.e., OCA Acquisition and TLGY Acquisition go up and down completely randomly.

Pair Corralation between OCA Acquisition and TLGY Acquisition

If you would invest  1,155  in TLGY Acquisition Corp on September 17, 2024 and sell it today you would earn a total of  0.00  from holding TLGY Acquisition Corp or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	6.25%
Values	Daily Returns

OCA Acquisition Corp  vs.  TLGY Acquisition Corp

OCA Acquisition Corp

Risk-Adjusted Performance

0 of 100

Very Weak

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

TLGY Acquisition Corp

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in TLGY Acquisition Corp are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, TLGY Acquisition is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with OCA Acquisition and TLGY Acquisition

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

The idea behind OCA Acquisition Corp and TLGY 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.

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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.