Correlation Between Cartesian Growth and Sound Point

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Cartesian Growth and Sound Point 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 Cartesian Growth and Sound Point into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cartesian Growth and Sound Point Acquisition, you can compare the effects of market volatilities on Cartesian Growth and Sound Point 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 Cartesian Growth with a short position of Sound Point. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cartesian Growth and Sound Point.

Diversification Opportunities for Cartesian Growth and Sound Point

0.03
  Correlation Coefficient

Significant diversification

The 3 months correlation between Cartesian and Sound is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Cartesian Growth and Sound Point Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sound Point Acquisition and Cartesian Growth 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 Cartesian Growth are associated (or correlated) with Sound Point. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sound Point Acquisition has no effect on the direction of Cartesian Growth i.e., Cartesian Growth and Sound Point go up and down completely randomly.

Pair Corralation between Cartesian Growth and Sound Point

If you would invest  1,138  in Cartesian Growth on September 16, 2024 and sell it today you would earn a total of  25.00  from holding Cartesian Growth or generate 2.2% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy1.54%
ValuesDaily Returns

Cartesian Growth  vs.  Sound Point Acquisition

 Performance 
       Timeline  
Cartesian Growth 

Risk-Adjusted Performance

9 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Cartesian Growth are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable technical and fundamental indicators, Cartesian Growth is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.
Sound Point Acquisition 

Risk-Adjusted Performance

0 of 100

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

Cartesian Growth and Sound Point Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Cartesian Growth and Sound Point

The main advantage of trading using opposite Cartesian Growth and Sound Point positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cartesian Growth position performs unexpectedly, Sound Point 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 Sound Point will offset losses from the drop in Sound Point's long position.
The idea behind Cartesian Growth and Sound Point 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.
Check out your portfolio center.
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.

Other Complementary Tools

Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
Portfolio Backtesting
Avoid under-diversification and over-optimization by backtesting your portfolios
Economic Indicators
Top statistical indicators that provide insights into how an economy is performing
Financial Widgets
Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets
Earnings Calls
Check upcoming earnings announcements updated hourly across public exchanges