Correlation Between Roth CH and Maquia Capital

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

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

Diversification Opportunities for Roth CH and Maquia Capital

-0.63

Correlation Coefficient

Roth CH  Maquia Capital

Excellent diversification

The 3 months correlation between Roth and Maquia is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Roth CH Acquisition and Maquia Capital Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maquia Capital Acqui and Roth CH 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 Roth CH Acquisition are associated (or correlated) with Maquia Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maquia Capital Acqui has no effect on the direction of Roth CH i.e., Roth CH and Maquia Capital go up and down completely randomly.

Pair Corralation between Roth CH and Maquia Capital

Assuming the 90 days horizon Roth CH Acquisition is expected to generate 1.16 times more return on investment than Maquia Capital. However, Roth CH is 1.16 times more volatile than Maquia Capital Acquisition. It trades about 0.03 of its potential returns per unit of risk. Maquia Capital Acquisition is currently generating about 0.02 per unit of risk. If you would invest  1,028  in Roth CH Acquisition on September 17, 2024 and sell it today you would earn a total of  127.00  from holding Roth CH Acquisition or generate 12.35% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	80.22%
Values	Daily Returns

Roth CH Acquisition  vs.  Maquia Capital Acquisition

Roth CH Acquisition

Risk-Adjusted Performance

0 of 100

Very Weak

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

Maquia Capital Acqui

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Roth CH and Maquia Capital

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

The idea behind Roth CH Acquisition and Maquia 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.