Correlation Between Procure Space and SPAC
Can any of the company-specific risk be diversified away by investing in both Procure Space and SPAC 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 Procure Space and SPAC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Procure Space ETF and SPAC and New, you can compare the effects of market volatilities on Procure Space and SPAC 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 Procure Space with a short position of SPAC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Procure Space and SPAC.
Diversification Opportunities for Procure Space and SPAC
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Procure and SPAC is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Procure Space ETF and SPAC and New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPAC and New and Procure Space 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 Procure Space ETF are associated (or correlated) with SPAC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPAC and New has no effect on the direction of Procure Space i.e., Procure Space and SPAC go up and down completely randomly.
Pair Corralation between Procure Space and SPAC
Considering the 90-day investment horizon Procure Space ETF is expected to generate 1.83 times more return on investment than SPAC. However, Procure Space is 1.83 times more volatile than SPAC and New. It trades about 0.25 of its potential returns per unit of risk. SPAC and New is currently generating about -0.04 per unit of risk. If you would invest 2,563 in Procure Space ETF on June 6, 2025 and sell it today you would earn a total of 755.00 from holding Procure Space ETF or generate 29.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Procure Space ETF vs. SPAC and New
Performance |
| Timeline |
| Procure Space ETF |
| SPAC and New |
Procure Space and SPAC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Procure Space and SPAC
The main advantage of trading using opposite Procure Space and SPAC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Procure Space position performs unexpectedly, SPAC 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 SPAC will offset losses from the drop in SPAC's long position.| Procure Space vs. First Trust Nasdaq | Procure Space vs. First Trust Nasdaq | Procure Space vs. First Trust Nasdaq | Procure Space vs. First Trust Nasdaq |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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