Correlation Between Voyager Acquisition and Lionheart Holdings

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

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

Diversification Opportunities for Voyager Acquisition and Lionheart Holdings

0.91

Correlation Coefficient

Voyager Acquisition  Lionheart Holdings

Almost no diversification

The 3 months correlation between Voyager and Lionheart is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Voyager Acquisition Corp and Lionheart Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lionheart Holdings and Voyager 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 Voyager Acquisition Corp are associated (or correlated) with Lionheart Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lionheart Holdings has no effect on the direction of Voyager Acquisition i.e., Voyager Acquisition and Lionheart Holdings go up and down completely randomly.

Pair Corralation between Voyager Acquisition and Lionheart Holdings

Given the investment horizon of 90 days Voyager Acquisition Corp is expected to generate 2.35 times more return on investment than Lionheart Holdings. However, Voyager Acquisition is 2.35 times more volatile than Lionheart Holdings. It trades about 0.14 of its potential returns per unit of risk. Lionheart Holdings is currently generating about 0.23 per unit of risk. If you would invest  1,002  in Voyager Acquisition Corp on December 30, 2024 and sell it today you would earn a total of  19.00  from holding Voyager Acquisition Corp or generate 1.9% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Voyager Acquisition Corp  vs.  Lionheart Holdings

Voyager Acquisition Corp

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Voyager Acquisition Corp are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong fundamental indicators, Voyager Acquisition is not utilizing all of its potentials. The newest stock price confusion, may contribute to short-horizon losses for the traders.

Lionheart Holdings

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Lionheart Holdings are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Lionheart Holdings is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Voyager Acquisition and Lionheart Holdings

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

The idea behind Voyager Acquisition Corp and Lionheart Holdings 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.