Correlation Between Voyager Acquisition and Plum Acquisition

Can any of the company-specific risk be diversified away by investing in both Voyager Acquisition and Plum Acquisition 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 Plum Acquisition 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 Plum Acquisition Corp, you can compare the effects of market volatilities on Voyager Acquisition and Plum Acquisition 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 Plum Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voyager Acquisition and Plum Acquisition.

Diversification Opportunities for Voyager Acquisition and Plum Acquisition

0.73

Correlation Coefficient

Voyager Acquisition  Plum Acquisition

Poor diversification

The 3 months correlation between Voyager and Plum is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Voyager Acquisition Corp and Plum Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Plum Acquisition Corp 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 Plum Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Plum Acquisition Corp has no effect on the direction of Voyager Acquisition i.e., Voyager Acquisition and Plum Acquisition go up and down completely randomly.

Pair Corralation between Voyager Acquisition and Plum Acquisition

Given the investment horizon of 90 days Voyager Acquisition Corp is expected to generate 0.02 times more return on investment than Plum Acquisition. However, Voyager Acquisition Corp is 58.32 times less risky than Plum Acquisition. It trades about 0.1 of its potential returns per unit of risk. Plum Acquisition Corp is currently generating about -0.08 per unit of risk. If you would invest  1,003  in Voyager Acquisition Corp on December 27, 2024 and sell it today you would earn a total of  14.00  from holding Voyager Acquisition Corp or generate 1.4% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	20.0%
Values	Daily Returns

Voyager Acquisition Corp  vs.  Plum Acquisition Corp

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 8 (%) 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.

Plum Acquisition Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Plum Acquisition Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's forward-looking indicators remain fairly stable which may send shares a bit higher in April 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with Voyager Acquisition and Plum Acquisition

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

The idea behind Voyager Acquisition Corp and Plum Acquisition Corp 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..