Correlation Between Highview Merger and Blue Acquisition
Can any of the company-specific risk be diversified away by investing in both Highview Merger and Blue Acquisition 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 Highview Merger and Blue Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Highview Merger Corp and Blue Acquisition Corp, you can compare the effects of market volatilities on Highview Merger and Blue Acquisition 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 Highview Merger with a short position of Blue Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Highview Merger and Blue Acquisition.
Diversification Opportunities for Highview Merger and Blue Acquisition
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Highview and Blue is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Highview Merger Corp and Blue Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Acquisition Corp and Highview Merger 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 Highview Merger Corp are associated (or correlated) with Blue Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Acquisition Corp has no effect on the direction of Highview Merger i.e., Highview Merger and Blue Acquisition go up and down completely randomly.
Pair Corralation between Highview Merger and Blue Acquisition
Assuming the 90 days horizon Highview Merger is expected to generate 2.74 times less return on investment than Blue Acquisition. In addition to that, Highview Merger is 3.47 times more volatile than Blue Acquisition Corp. It trades about 0.02 of its total potential returns per unit of risk. Blue Acquisition Corp is currently generating about 0.22 per unit of volatility. If you would invest 997.00 in Blue Acquisition Corp on August 25, 2025 and sell it today you would earn a total of 33.00 from holding Blue Acquisition Corp or generate 3.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Highview Merger Corp vs. Blue Acquisition Corp
Performance |
| Timeline |
| Highview Merger Corp |
| Blue Acquisition Corp |
Highview Merger and Blue Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Highview Merger and Blue Acquisition
The main advantage of trading using opposite Highview Merger and Blue Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Highview Merger position performs unexpectedly, Blue Acquisition 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 Blue Acquisition will offset losses from the drop in Blue Acquisition's long position.| Highview Merger vs. Sizzle Acquisition Corp | Highview Merger vs. Copley Acquisition Corp | Highview Merger vs. Rithm Acquisition Corp | Highview Merger vs. Perimeter Acquisition Corp |
| Blue Acquisition vs. NewHold Investment Corp | Blue Acquisition vs. Waton Financial Limited | Blue Acquisition vs. Destiny Tech100 | Blue Acquisition vs. Great Elm Capital |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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