Correlation Between Goal Acquisitions and Dune Acquisition

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

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

Diversification Opportunities for Goal Acquisitions and Dune Acquisition

-0.28

Correlation Coefficient

Goal Acquisitions  Dune Acquisition

Very good diversification

The 3 months correlation between Goal and Dune is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Goal Acquisitions Corp and Dune Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dune Acquisition and Goal Acquisitions 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 Goal Acquisitions Corp are associated (or correlated) with Dune Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dune Acquisition has no effect on the direction of Goal Acquisitions i.e., Goal Acquisitions and Dune Acquisition go up and down completely randomly.

Pair Corralation between Goal Acquisitions and Dune Acquisition

If you would invest  7.00  in Dune Acquisition on September 14, 2024 and sell it today you would earn a total of  0.00  from holding Dune Acquisition or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Goal Acquisitions Corp  vs.  Dune Acquisition

Goal Acquisitions Corp

Risk-Adjusted Performance

0 of 100

Very Weak

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

Dune Acquisition

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Goal Acquisitions and Dune Acquisition

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

The idea behind Goal Acquisitions Corp and Dune Acquisition 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.