Correlation Between Breeze Holdings and Prime Impact

Can any of the company-specific risk be diversified away by investing in both Breeze Holdings and Prime Impact 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 Breeze Holdings and Prime Impact into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Breeze Holdings and Prime Impact

0.67

Correlation Coefficient

Breeze Holdings  Prime Impact

Poor diversification

The 3 months correlation between Breeze and Prime is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Breeze Holdings Acquisition and Prime Impact Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prime Impact Acquisition and Breeze Holdings 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 Breeze Holdings Acquisition are associated (or correlated) with Prime Impact. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prime Impact Acquisition has no effect on the direction of Breeze Holdings i.e., Breeze Holdings and Prime Impact go up and down completely randomly.

Pair Corralation between Breeze Holdings and Prime Impact

If you would invest  1,069  in Prime Impact Acquisition on September 17, 2024 and sell it today you would earn a total of  0.00  from holding Prime Impact Acquisition or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Breeze Holdings Acquisition  vs.  Prime Impact Acquisition

Breeze Holdings Acqu

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Breeze Holdings Acquisition has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong technical and fundamental indicators, Breeze Holdings is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Prime Impact Acquisition

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Prime Impact Acquisition has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Prime Impact is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Breeze Holdings and Prime Impact

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

The idea behind Breeze Holdings Acquisition and Prime Impact Acquisition 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.