Correlation Between PWUP Old and Investcorp Europe

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

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

Diversification Opportunities for PWUP Old and Investcorp Europe

0.03

Correlation Coefficient

PWUP Old  Investcorp Europe

Significant diversification

The 3 months correlation between PWUP and Investcorp is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding PWUP Old and Investcorp Europe Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investcorp Europe and PWUP Old 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 PWUP Old are associated (or correlated) with Investcorp Europe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investcorp Europe has no effect on the direction of PWUP Old i.e., PWUP Old and Investcorp Europe go up and down completely randomly.

Pair Corralation between PWUP Old and Investcorp Europe

Given the investment horizon of 90 days PWUP Old is expected to under-perform the Investcorp Europe. In addition to that, PWUP Old is 36.13 times more volatile than Investcorp Europe Acquisition. It trades about -0.04 of its total potential returns per unit of risk. Investcorp Europe Acquisition is currently generating about 0.13 per unit of volatility. If you would invest  1,051  in Investcorp Europe Acquisition on December 30, 2024 and sell it today you would earn a total of  18.00  from holding Investcorp Europe Acquisition or generate 1.71% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	56.45%
Values	Daily Returns

PWUP Old  vs.  Investcorp Europe Acquisition

PWUP Old

Risk-Adjusted Performance

Very Weak

Over the last 90 days PWUP Old has generated negative risk-adjusted returns adding no value to investors with long positions. Even with fragile performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Investcorp Europe

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Investcorp Europe Acquisition are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong fundamental indicators, Investcorp Europe is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with PWUP Old and Investcorp Europe

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

The idea behind PWUP Old and Investcorp Europe 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 CEOs Directory module to screen CEOs from public companies around the world.