Correlation Between PowerUp Acquisition and Trinity Capital

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

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

Diversification Opportunities for PowerUp Acquisition and Trinity Capital

-0.24

Correlation Coefficient

PowerUp Acquisition  Trinity Capital

Very good diversification

The 3 months correlation between PowerUp and Trinity is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding PowerUp Acquisition Corp and Trinity Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trinity Capital and PowerUp 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 PowerUp Acquisition Corp are associated (or correlated) with Trinity Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trinity Capital has no effect on the direction of PowerUp Acquisition i.e., PowerUp Acquisition and Trinity Capital go up and down completely randomly.

Pair Corralation between PowerUp Acquisition and Trinity Capital

Assuming the 90 days horizon PowerUp Acquisition Corp is expected to under-perform the Trinity Capital. In addition to that, PowerUp Acquisition is 19.95 times more volatile than Trinity Capital. It trades about -0.06 of its total potential returns per unit of risk. Trinity Capital is currently generating about 0.12 per unit of volatility. If you would invest  1,352  in Trinity Capital on September 3, 2024 and sell it today you would earn a total of  115.00  from holding Trinity Capital or generate 8.51% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	50.0%
Values	Daily Returns

PowerUp Acquisition Corp  vs.  Trinity Capital

PowerUp Acquisition Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days PowerUp Acquisition Corp 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 basic indicators remain fairly stable which may send shares a bit higher in January 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Trinity Capital

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Trinity Capital are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady forward indicators, Trinity Capital may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with PowerUp Acquisition and Trinity Capital

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

The idea behind PowerUp Acquisition Corp and Trinity Capital 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.