Correlation Between WinVest Acquisition and Credit Enhanced

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

Diversification Opportunities for WinVest Acquisition and Credit Enhanced

-0.15

Correlation Coefficient

WinVest Acquisition  Credit Enhanced

Good diversification

The 3 months correlation between WinVest and Credit is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding WinVest Acquisition Corp and Credit Enhanced Corts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Credit Enhanced Corts 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 Credit Enhanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Credit Enhanced Corts has no effect on the direction of WinVest Acquisition i.e., WinVest Acquisition and Credit Enhanced go up and down completely randomly.

Pair Corralation between WinVest Acquisition and Credit Enhanced

Assuming the 90 days horizon WinVest Acquisition Corp is expected to generate 59.06 times more return on investment than Credit Enhanced. However, WinVest Acquisition is 59.06 times more volatile than Credit Enhanced Corts. It trades about 0.14 of its potential returns per unit of risk. Credit Enhanced Corts is currently generating about 0.02 per unit of risk. If you would invest  7.02  in WinVest Acquisition Corp on October 26, 2024 and sell it today you would earn a total of  1.71  from holding WinVest Acquisition Corp or generate 24.36% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	60.12%
Values	Daily Returns

WinVest Acquisition Corp  vs.  Credit Enhanced Corts

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.

Credit Enhanced Corts

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Credit Enhanced Corts are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Credit Enhanced is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with WinVest Acquisition and Credit Enhanced

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

The idea behind WinVest Acquisition Corp and Credit Enhanced Corts 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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.