Correlation Between Cartesian Growth and Jaws Mustang
Can any of the company-specific risk be diversified away by investing in both Cartesian Growth and Jaws Mustang 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 Cartesian Growth and Jaws Mustang into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cartesian Growth and Jaws Mustang Acquisition, you can compare the effects of market volatilities on Cartesian Growth and Jaws Mustang 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 Cartesian Growth with a short position of Jaws Mustang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cartesian Growth and Jaws Mustang.
Diversification Opportunities for Cartesian Growth and Jaws Mustang
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cartesian and Jaws is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Cartesian Growth and Jaws Mustang Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jaws Mustang Acquisition and Cartesian Growth 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 Cartesian Growth are associated (or correlated) with Jaws Mustang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jaws Mustang Acquisition has no effect on the direction of Cartesian Growth i.e., Cartesian Growth and Jaws Mustang go up and down completely randomly.
Pair Corralation between Cartesian Growth and Jaws Mustang
Assuming the 90 days horizon Cartesian Growth is expected to generate 0.6 times more return on investment than Jaws Mustang. However, Cartesian Growth is 1.67 times less risky than Jaws Mustang. It trades about 0.13 of its potential returns per unit of risk. Jaws Mustang Acquisition is currently generating about -0.01 per unit of risk. If you would invest 1,138 in Cartesian Growth on October 26, 2024 and sell it today you would earn a total of 25.00 from holding Cartesian Growth or generate 2.2% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 20.34% |
Values | Daily Returns |
Cartesian Growth vs. Jaws Mustang Acquisition
Performance |
Timeline |
Cartesian Growth |
Jaws Mustang Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Cartesian Growth and Jaws Mustang Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Cartesian Growth and Jaws Mustang
The main advantage of trading using opposite Cartesian Growth and Jaws Mustang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cartesian Growth position performs unexpectedly, Jaws Mustang 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 Jaws Mustang will offset losses from the drop in Jaws Mustang's long position.Cartesian Growth vs. KKR Co LP | Cartesian Growth vs. Carlyle Group | Cartesian Growth vs. Blue Owl Capital | Cartesian Growth vs. TPG Inc |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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