Correlation Between Social Capital and Churchill Capital
Can any of the company-specific risk be diversified away by investing in both Social Capital 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 Social Capital and Churchill Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Social Capital Hedosophia and Churchill Capital Corp, you can compare the effects of market volatilities on Social Capital 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 Social Capital with a short position of Churchill Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Social Capital and Churchill Capital.
Diversification Opportunities for Social Capital and Churchill Capital
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Social and Churchill is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Social Capital Hedosophia 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 Social Capital 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 Social Capital Hedosophia 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 Social Capital i.e., Social Capital and Churchill Capital go up and down completely randomly.
Pair Corralation between Social Capital and Churchill Capital
If you would invest 1,069 in Churchill Capital Corp on January 26, 2024 and sell it today you would earn a total of 4.00 from holding Churchill Capital Corp or generate 0.37% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Social Capital Hedosophia vs. Churchill Capital Corp
Performance |
Timeline |
Social Capital Hedosophia |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Churchill Capital Corp |
Social Capital and Churchill Capital Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Social Capital and Churchill Capital
The main advantage of trading using opposite Social Capital and Churchill Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Social Capital 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.Social Capital vs. Weyco Group | Social Capital vs. CF Industries Holdings | Social Capital vs. Braskem SA Class | Social Capital vs. Hawkins |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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