Correlation Between Prime Number and Kingswood Acquisition

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

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

Diversification Opportunities for Prime Number and Kingswood Acquisition

0.37

Correlation Coefficient

Prime Number  Kingswood Acquisition

Weak diversification

The 3 months correlation between Prime and Kingswood is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Prime Number Acquisition and Kingswood Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kingswood Acquisition and Prime Number 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 Prime Number Acquisition are associated (or correlated) with Kingswood Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kingswood Acquisition has no effect on the direction of Prime Number i.e., Prime Number and Kingswood Acquisition go up and down completely randomly.

Pair Corralation between Prime Number and Kingswood Acquisition

If you would invest  0.82  in Kingswood Acquisition Corp on September 29, 2024 and sell it today you would earn a total of  0.00  from holding Kingswood Acquisition Corp or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Prime Number Acquisition  vs.  Kingswood Acquisition Corp

Prime Number Acquisition

Risk-Adjusted Performance

0 of 100

Very Weak

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

Kingswood Acquisition

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Prime Number and Kingswood Acquisition

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

The idea behind Prime Number Acquisition and Kingswood 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.