Correlation Between Alignvest Acquisition and Canaccord Genuity

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Can any of the company-specific risk be diversified away by investing in both Alignvest Acquisition and Canaccord Genuity 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 Alignvest Acquisition and Canaccord Genuity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alignvest Acquisition II and Canaccord Genuity Group, you can compare the effects of market volatilities on Alignvest Acquisition and Canaccord Genuity 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 Alignvest Acquisition with a short position of Canaccord Genuity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alignvest Acquisition and Canaccord Genuity.

Diversification Opportunities for Alignvest Acquisition and Canaccord Genuity

-0.14
  Correlation Coefficient

Good diversification

The 3 months correlation between Alignvest and Canaccord is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Alignvest Acquisition II and Canaccord Genuity Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canaccord Genuity and Alignvest 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 Alignvest Acquisition II are associated (or correlated) with Canaccord Genuity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canaccord Genuity has no effect on the direction of Alignvest Acquisition i.e., Alignvest Acquisition and Canaccord Genuity go up and down completely randomly.

Pair Corralation between Alignvest Acquisition and Canaccord Genuity

Assuming the 90 days trading horizon Alignvest Acquisition II is expected to under-perform the Canaccord Genuity. But the stock apears to be less risky and, when comparing its historical volatility, Alignvest Acquisition II is 1.36 times less risky than Canaccord Genuity. The stock trades about -0.05 of its potential returns per unit of risk. The Canaccord Genuity Group is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  1,110  in Canaccord Genuity Group on August 20, 2025 and sell it today you would earn a total of  4.00  from holding Canaccord Genuity Group or generate 0.36% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Alignvest Acquisition II  vs.  Canaccord Genuity Group

 Performance 
       Timeline  
Alignvest Acquisition 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Alignvest Acquisition II are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy fundamental indicators, Alignvest Acquisition is not utilizing all of its potentials. The newest stock price disarray, may contribute to short-term losses for the investors.
Canaccord Genuity 

Risk-Adjusted Performance

Mild

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Canaccord Genuity Group are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Canaccord Genuity displayed solid returns over the last few months and may actually be approaching a breakup point.

Alignvest Acquisition and Canaccord Genuity Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Alignvest Acquisition and Canaccord Genuity

The main advantage of trading using opposite Alignvest Acquisition and Canaccord Genuity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alignvest Acquisition position performs unexpectedly, Canaccord Genuity 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 Canaccord Genuity will offset losses from the drop in Canaccord Genuity's long position.
The idea behind Alignvest Acquisition II and Canaccord Genuity Group 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 AI Portfolio Prophet module to use AI to generate optimal portfolios and find profitable investment opportunities.

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