Correlation Between WinVest Acquisition and Launch One

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

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

Diversification Opportunities for WinVest Acquisition and Launch One

0.18

Correlation Coefficient

WinVest Acquisition  Launch One

Average diversification

The 3 months correlation between WinVest and Launch is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding WinVest Acquisition Corp and Launch One Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Launch One Acquisition and WinVest 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 WinVest Acquisition Corp are associated (or correlated) with Launch One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Launch One Acquisition has no effect on the direction of WinVest Acquisition i.e., WinVest Acquisition and Launch One go up and down completely randomly.

Pair Corralation between WinVest Acquisition and Launch One

Given the investment horizon of 90 days WinVest Acquisition Corp is expected to generate 8.08 times more return on investment than Launch One. However, WinVest Acquisition is 8.08 times more volatile than Launch One Acquisition. It trades about 0.01 of its potential returns per unit of risk. Launch One Acquisition is currently generating about 0.06 per unit of risk. If you would invest  1,260  in WinVest Acquisition Corp on December 21, 2024 and sell it today you would lose (10.00) from holding WinVest Acquisition Corp or give up 0.79% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.33%
Values	Daily Returns

WinVest Acquisition Corp  vs.  Launch One Acquisition

WinVest Acquisition Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days WinVest Acquisition Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, WinVest Acquisition is not utilizing all of its potentials. The newest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Launch One Acquisition

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Launch One Acquisition are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Launch One is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with WinVest Acquisition and Launch One

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

The idea behind WinVest Acquisition Corp and Launch One 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.