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

Cartesian Growth  Jaws Mustang

Pay attention - limited upside

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 under-perform the Jaws Mustang. In addition to that, Cartesian Growth is 12.35 times more volatile than Jaws Mustang Acquisition. It trades about -0.05 of its total potential returns per unit of risk. Jaws Mustang Acquisition is currently generating about 0.07 per unit of volatility. If you would invest  1,014  in Jaws Mustang Acquisition on October 10, 2024 and sell it today you would earn a total of  116.00  from holding Jaws Mustang Acquisition or generate 11.44% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	92.34%
Values	Daily Returns

Cartesian Growth  vs.  Jaws Mustang Acquisition

Cartesian Growth

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cartesian Growth 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 technical and fundamental indicators remain fairly stable which may send shares a bit higher in February 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Jaws Mustang Acquisition

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Jaws Mustang Acquisition has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Jaws Mustang is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

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.

The idea behind Cartesian Growth and Jaws Mustang 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.