Correlation Between Artemis Strategic and A SPAC

Can any of the company-specific risk be diversified away by investing in both Artemis Strategic and A SPAC 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 Artemis Strategic and A SPAC into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Artemis Strategic Investment and A SPAC II, you can compare the effects of market volatilities on Artemis Strategic and A SPAC 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 Artemis Strategic with a short position of A SPAC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artemis Strategic and A SPAC.

Diversification Opportunities for Artemis Strategic and A SPAC

-0.7

Correlation Coefficient

Artemis Strategic  A SPAC

Excellent diversification

The 3 months correlation between Artemis and ASCB is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Artemis Strategic Investment and A SPAC II in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on A SPAC II and Artemis Strategic 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 Artemis Strategic Investment are associated (or correlated) with A SPAC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of A SPAC II has no effect on the direction of Artemis Strategic i.e., Artemis Strategic and A SPAC go up and down completely randomly.

Pair Corralation between Artemis Strategic and A SPAC

If you would invest  1,068  in Artemis Strategic Investment on September 3, 2024 and sell it today you would earn a total of  0.00  from holding Artemis Strategic Investment or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	1.56%
Values	Daily Returns

Artemis Strategic Investment  vs.  A SPAC II

Artemis Strategic

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Artemis Strategic Investment has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical and fundamental indicators, Artemis Strategic is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

A SPAC II

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days A SPAC II has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental indicators, A SPAC is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Artemis Strategic and A SPAC

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

The idea behind Artemis Strategic Investment and A SPAC II 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.