Correlation Between Graf Global and Mountain Lake
Can any of the company-specific risk be diversified away by investing in both Graf Global and Mountain Lake 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 Graf Global and Mountain Lake into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Graf Global Corp and Mountain Lake Acquisition, you can compare the effects of market volatilities on Graf Global and Mountain Lake 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 Graf Global with a short position of Mountain Lake. Check out your portfolio center. Please also check ongoing floating volatility patterns of Graf Global and Mountain Lake.
Diversification Opportunities for Graf Global and Mountain Lake
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Graf and Mountain is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Graf Global Corp and Mountain Lake Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mountain Lake Acquisition and Graf Global 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 Graf Global Corp are associated (or correlated) with Mountain Lake. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mountain Lake Acquisition has no effect on the direction of Graf Global i.e., Graf Global and Mountain Lake go up and down completely randomly.
Pair Corralation between Graf Global and Mountain Lake
Given the investment horizon of 90 days Graf Global is expected to generate 9.27 times less return on investment than Mountain Lake. But when comparing it to its historical volatility, Graf Global Corp is 6.64 times less risky than Mountain Lake. It trades about 0.03 of its potential returns per unit of risk. Mountain Lake Acquisition is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,044 in Mountain Lake Acquisition on July 24, 2025 and sell it today you would earn a total of 56.00 from holding Mountain Lake Acquisition or generate 5.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Graf Global Corp vs. Mountain Lake Acquisition
Performance |
| Timeline |
| Graf Global Corp |
| Mountain Lake Acquisition |
Graf Global and Mountain Lake Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Graf Global and Mountain Lake
The main advantage of trading using opposite Graf Global and Mountain Lake positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Graf Global position performs unexpectedly, Mountain Lake 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 Mountain Lake will offset losses from the drop in Mountain Lake's long position.| Graf Global vs. Launch One Acquisition | Graf Global vs. Legato Merger Corp | Graf Global vs. Voyager Acquisition Corp | Graf Global vs. Mountain Lake Acquisition |
| Mountain Lake vs. Haymaker Acquisition Corp | Mountain Lake vs. Voyager Acquisition Corp | Mountain Lake vs. Launch One Acquisition | Mountain Lake vs. Graf Global Corp |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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