Correlation Between Ares Acquisition and Calissio Resources

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

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

Diversification Opportunities for Ares Acquisition and Calissio Resources

-0.31

Correlation Coefficient

Ares Acquisition  Calissio Resources

Very good diversification

The 3 months correlation between Ares and Calissio is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Ares Acquisition and Calissio Resources Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calissio Resources and Ares 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 Ares Acquisition are associated (or correlated) with Calissio Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calissio Resources has no effect on the direction of Ares Acquisition i.e., Ares Acquisition and Calissio Resources go up and down completely randomly.

Pair Corralation between Ares Acquisition and Calissio Resources

Considering the 90-day investment horizon Ares Acquisition is expected to generate 696.84 times less return on investment than Calissio Resources. But when comparing it to its historical volatility, Ares Acquisition is 851.55 times less risky than Calissio Resources. It trades about 0.18 of its potential returns per unit of risk. Calissio Resources Group is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  0.09  in Calissio Resources Group on September 29, 2024 and sell it today you would lose (0.05) from holding Calissio Resources Group or give up 55.56% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	34.12%
Values	Daily Returns

Ares Acquisition  vs.  Calissio Resources Group

Ares Acquisition

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ares Acquisition has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Ares Acquisition is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Calissio Resources

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Calissio Resources Group has generated negative risk-adjusted returns adding no value to investors with long positions. Even with fragile performance in the last few months, the Stock's technical and fundamental indicators remain relatively invariable which may send shares a bit higher in January 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Ares Acquisition and Calissio Resources

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

The idea behind Ares Acquisition and Calissio Resources Group 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.