Correlation Between Swiftmerge Acquisition and Acri Capital

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

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

Diversification Opportunities for Swiftmerge Acquisition and Acri Capital

-0.32

Correlation Coefficient

Swiftmerge Acquisition  Acri Capital

Very good diversification

The 3 months correlation between Swiftmerge and Acri is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Swiftmerge Acquisition Corp and Acri Capital Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acri Capital Acquisition and Swiftmerge 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 Swiftmerge Acquisition Corp are associated (or correlated) with Acri Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acri Capital Acquisition has no effect on the direction of Swiftmerge Acquisition i.e., Swiftmerge Acquisition and Acri Capital go up and down completely randomly.

Pair Corralation between Swiftmerge Acquisition and Acri Capital

Assuming the 90 days horizon Swiftmerge Acquisition Corp is expected to generate 0.2 times more return on investment than Acri Capital. However, Swiftmerge Acquisition Corp is 5.05 times less risky than Acri Capital. It trades about 0.1 of its potential returns per unit of risk. Acri Capital Acquisition is currently generating about -0.02 per unit of risk. If you would invest  1,104  in Swiftmerge Acquisition Corp on September 7, 2024 and sell it today you would earn a total of  95.00  from holding Swiftmerge Acquisition Corp or generate 8.61% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	25.0%
Values	Daily Returns

Swiftmerge Acquisition Corp  vs.  Acri Capital Acquisition

Swiftmerge Acquisition

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Swiftmerge Acquisition Corp are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Swiftmerge Acquisition may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Acri Capital Acquisition

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Acri Capital Acquisition has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with Swiftmerge Acquisition and Acri Capital

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

The idea behind Swiftmerge Acquisition Corp and Acri Capital 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.