Correlation Between Voyager Acquisition and Launch One

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

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

Diversification Opportunities for Voyager Acquisition and Launch One

0.03

Correlation Coefficient

Voyager Acquisition  Launch One

Significant diversification

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

Pair Corralation between Voyager Acquisition and Launch One

Given the investment horizon of 90 days Voyager Acquisition is expected to generate 116.24 times less return on investment than Launch One. But when comparing it to its historical volatility, Voyager Acquisition Corp is 97.03 times less risky than Launch One. It trades about 0.07 of its potential returns per unit of risk. Launch One Acquisition is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  8.19  in Launch One Acquisition on September 29, 2024 and sell it today you would earn a total of  0.81  from holding Launch One Acquisition or generate 9.89% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	53.97%
Values	Daily Returns

Voyager Acquisition Corp  vs.  Launch One Acquisition

Voyager Acquisition Corp

Risk-Adjusted Performance

5 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Voyager Acquisition Corp are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong fundamental indicators, Voyager Acquisition is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Launch One Acquisition

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Launch One Acquisition are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly inconsistent basic indicators, Launch One showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Voyager Acquisition and Launch One

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

The idea behind Voyager Acquisition Corp and Launch One 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..