Correlation Between Mars Acquisition and Arogo Capital

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

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

Diversification Opportunities for Mars Acquisition and Arogo Capital

0.33

Correlation Coefficient

Mars Acquisition  Arogo Capital

Weak diversification

The 3 months correlation between Mars and Arogo is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Mars Acquisition Corp and Arogo Capital Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arogo Capital Acquisition and Mars 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 Mars Acquisition Corp are associated (or correlated) with Arogo Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arogo Capital Acquisition has no effect on the direction of Mars Acquisition i.e., Mars Acquisition and Arogo Capital go up and down completely randomly.

Pair Corralation between Mars Acquisition and Arogo Capital

Given the investment horizon of 90 days Mars Acquisition Corp is expected to under-perform the Arogo Capital. In addition to that, Mars Acquisition is 11.61 times more volatile than Arogo Capital Acquisition. It trades about -0.04 of its total potential returns per unit of risk. Arogo Capital Acquisition is currently generating about 0.04 per unit of volatility. If you would invest  1,067  in Arogo Capital Acquisition on September 26, 2024 and sell it today you would earn a total of  28.00  from holding Arogo Capital Acquisition or generate 2.62% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	78.21%
Values	Daily Returns

Mars Acquisition Corp  vs.  Arogo Capital Acquisition

Mars Acquisition Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Mars 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 fairly strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Arogo Capital Acquisition

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Arogo Capital Acquisition has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical and fundamental indicators, Arogo Capital is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Mars Acquisition and Arogo Capital

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

The idea behind Mars Acquisition Corp and Arogo 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.