Correlation Between Swiftmerge Acquisition and Target Global

Can any of the company-specific risk be diversified away by investing in both Swiftmerge Acquisition and Target Global 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 Target Global 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 Target Global Acquisition, you can compare the effects of market volatilities on Swiftmerge Acquisition and Target Global 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 Target Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Swiftmerge Acquisition and Target Global.

Diversification Opportunities for Swiftmerge Acquisition and Target Global

-0.29

Correlation Coefficient

Swiftmerge Acquisition  Target Global

Very good diversification

The 3 months correlation between Swiftmerge and Target is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Swiftmerge Acquisition Corp and Target Global Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Target Global 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 Target Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Target Global Acquisition has no effect on the direction of Swiftmerge Acquisition i.e., Swiftmerge Acquisition and Target Global go up and down completely randomly.

Pair Corralation between Swiftmerge Acquisition and Target Global

Assuming the 90 days horizon Swiftmerge Acquisition Corp is expected to generate 202.06 times more return on investment than Target Global. However, Swiftmerge Acquisition is 202.06 times more volatile than Target Global Acquisition. It trades about 0.04 of its potential returns per unit of risk. Target Global Acquisition is currently generating about -0.12 per unit of risk. If you would invest  1,104  in Swiftmerge Acquisition Corp on September 12, 2024 and sell it today you would earn a total of  51.00  from holding Swiftmerge Acquisition Corp or generate 4.62% return on investment over 90 days.

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

Swiftmerge Acquisition Corp  vs.  Target Global Acquisition

Swiftmerge Acquisition

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Swiftmerge Acquisition Corp are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Swiftmerge Acquisition is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Target Global Acquisition

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Target Global Acquisition has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Target Global is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Swiftmerge Acquisition and Target Global

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

The idea behind Swiftmerge Acquisition Corp and Target Global 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.