Correlation Between LAMF Global and Swiftmerge Acquisition

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

Diversification Opportunities for LAMF Global and Swiftmerge Acquisition

0.02

Correlation Coefficient

LAMF Global  Swiftmerge Acquisition

Significant diversification

The 3 months correlation between LAMF and Swiftmerge is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding LAMF Global Ventures and Swiftmerge Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swiftmerge Acquisition and LAMF 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 LAMF Global Ventures 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 LAMF Global i.e., LAMF Global and Swiftmerge Acquisition go up and down completely randomly.

Pair Corralation between LAMF Global and Swiftmerge Acquisition

Given the investment horizon of 90 days LAMF Global Ventures is expected to generate 0.34 times more return on investment than Swiftmerge Acquisition. However, LAMF Global Ventures is 2.92 times less risky than Swiftmerge Acquisition. It trades about 0.03 of its potential returns per unit of risk. Swiftmerge Acquisition Corp is currently generating about 0.0 per unit of risk. If you would invest  1,027  in LAMF Global Ventures on September 26, 2024 and sell it today you would earn a total of  24.00  from holding LAMF Global Ventures or generate 2.34% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	27.96%
Values	Daily Returns

LAMF Global Ventures  vs.  Swiftmerge Acquisition Corp

LAMF Global Ventures

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days LAMF Global Ventures has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, LAMF Global is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

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 uncertain performance in the last few months, the Stock's basic indicators 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.

Pair Trading with LAMF Global and Swiftmerge Acquisition

The main advantage of trading using opposite LAMF Global and Swiftmerge Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LAMF 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 LAMF Global Ventures 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.