Correlation Between Jaguar Global and Swiftmerge Acquisition

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

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

Diversification Opportunities for Jaguar Global and Swiftmerge Acquisition

-0.45

Correlation Coefficient

Jaguar Global  Swiftmerge Acquisition

Very good diversification

The 3 months correlation between Jaguar and Swiftmerge is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Jaguar Global Growth and Swiftmerge Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swiftmerge Acquisition and Jaguar Global 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 Jaguar Global Growth 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 Jaguar Global i.e., Jaguar Global and Swiftmerge Acquisition go up and down completely randomly.

Pair Corralation between Jaguar Global and Swiftmerge Acquisition

If you would invest  10.00  in Swiftmerge Acquisition Corp on September 14, 2024 and sell it today you would earn a total of  7.00  from holding Swiftmerge Acquisition Corp or generate 70.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	2.86%
Values	Daily Returns

Jaguar Global Growth  vs.  Swiftmerge Acquisition Corp

Jaguar Global Growth

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Jaguar Global Growth has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable fundamental indicators, Jaguar Global is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Swiftmerge Acquisition

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Swiftmerge Acquisition Corp are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Swiftmerge Acquisition showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Jaguar Global and Swiftmerge Acquisition

The main advantage of trading using opposite Jaguar Global and Swiftmerge Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jaguar Global 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 Jaguar Global Growth 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.