Correlation Between USHG Acquisition and Churchill Capital
Can any of the company-specific risk be diversified away by investing in both USHG Acquisition and Churchill 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 USHG Acquisition and Churchill Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between USHG Acquisition Corp and Churchill Capital Corp, you can compare the effects of market volatilities on USHG Acquisition and Churchill 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 USHG Acquisition with a short position of Churchill Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of USHG Acquisition and Churchill Capital.
Diversification Opportunities for USHG Acquisition and Churchill Capital
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between USHG and Churchill is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding USHG Acquisition Corp and Churchill Capital Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Churchill Capital Corp and USHG 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 USHG Acquisition Corp are associated (or correlated) with Churchill Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Churchill Capital Corp has no effect on the direction of USHG Acquisition i.e., USHG Acquisition and Churchill Capital go up and down completely randomly.
Pair Corralation between USHG Acquisition and Churchill Capital
If you would invest 1,018 in Churchill Capital Corp on January 26, 2024 and sell it today you would earn a total of 55.00 from holding Churchill Capital Corp or generate 5.4% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 0.0% |
Values | Daily Returns |
USHG Acquisition Corp vs. Churchill Capital Corp
Performance |
Timeline |
USHG Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Churchill Capital Corp |
USHG Acquisition and Churchill Capital Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with USHG Acquisition and Churchill Capital
The main advantage of trading using opposite USHG Acquisition and Churchill Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if USHG Acquisition position performs unexpectedly, Churchill 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 Churchill Capital will offset losses from the drop in Churchill Capital's long position.USHG Acquisition vs. Arrow Electronics | USHG Acquisition vs. Griffon | USHG Acquisition vs. Eldorado Gold Corp | USHG Acquisition vs. FARO Technologies |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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