Correlation Between WinVest Acquisition and Bannix Acquisition

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

Diversification Opportunities for WinVest Acquisition and Bannix Acquisition

-0.12

Correlation Coefficient

WinVest Acquisition  Bannix Acquisition

Good diversification

The 3 months correlation between WinVest and Bannix is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding WinVest Acquisition Corp and Bannix Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bannix Acquisition Corp 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 Bannix Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bannix Acquisition Corp has no effect on the direction of WinVest Acquisition i.e., WinVest Acquisition and Bannix Acquisition go up and down completely randomly.

Pair Corralation between WinVest Acquisition and Bannix Acquisition

Assuming the 90 days horizon WinVest Acquisition Corp is expected to under-perform the Bannix Acquisition. In addition to that, WinVest Acquisition is 16.39 times more volatile than Bannix Acquisition Corp. It trades about -0.14 of its total potential returns per unit of risk. Bannix Acquisition Corp is currently generating about 0.15 per unit of volatility. If you would invest  1,109  in Bannix Acquisition Corp on October 26, 2024 and sell it today you would earn a total of  66.00  from holding Bannix Acquisition Corp or generate 5.95% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	40.68%
Values	Daily Returns

WinVest Acquisition Corp  vs.  Bannix Acquisition Corp

WinVest Acquisition Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days WinVest Acquisition Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Even with abnormal performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in February 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Bannix Acquisition Corp

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Bannix Acquisition Corp are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of fairly conflicting forward indicators, Bannix Acquisition may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with WinVest Acquisition and Bannix Acquisition

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

The idea behind WinVest Acquisition Corp and Bannix 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.