Correlation Between A SPAC and Swiftmerge Acquisition

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

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

Diversification Opportunities for A SPAC and Swiftmerge Acquisition

0.31

Correlation Coefficient

A SPAC  Swiftmerge Acquisition

Weak diversification

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

Pair Corralation between A SPAC and Swiftmerge Acquisition

Assuming the 90 days horizon A SPAC II is expected to generate 0.89 times more return on investment than Swiftmerge Acquisition. However, A SPAC II is 1.13 times less risky than Swiftmerge Acquisition. It trades about 0.02 of its potential returns per unit of risk. Swiftmerge Acquisition Corp is currently generating about -0.03 per unit of risk. If you would invest  1,084  in A SPAC II on September 15, 2024 and sell it today you would earn a total of  16.00  from holding A SPAC II or generate 1.48% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	56.35%
Values	Daily Returns

A SPAC II  vs.  Swiftmerge Acquisition Corp

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. In spite of weak performance in the last few months, the Stock's fundamental drivers remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Swiftmerge Acquisition

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Swiftmerge Acquisition Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with A SPAC and Swiftmerge Acquisition

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

The idea behind A SPAC II and Swiftmerge 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.