Correlation Between Vivaldi Merger and The Arbitrage
Can any of the company-specific risk be diversified away by investing in both Vivaldi Merger and The Arbitrage 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 Vivaldi Merger and The Arbitrage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vivaldi Merger Arbitrage and The Arbitrage Fund, you can compare the effects of market volatilities on Vivaldi Merger and The Arbitrage 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 Vivaldi Merger with a short position of The Arbitrage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vivaldi Merger and The Arbitrage.
Diversification Opportunities for Vivaldi Merger and The Arbitrage
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Vivaldi and The is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Vivaldi Merger Arbitrage and The Arbitrage Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on The Arbitrage and Vivaldi 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 Vivaldi Merger Arbitrage are associated (or correlated) with The Arbitrage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of The Arbitrage has no effect on the direction of Vivaldi Merger i.e., Vivaldi Merger and The Arbitrage go up and down completely randomly.
Pair Corralation between Vivaldi Merger and The Arbitrage
Assuming the 90 days horizon Vivaldi Merger Arbitrage is expected to generate 0.47 times more return on investment than The Arbitrage. However, Vivaldi Merger Arbitrage is 2.13 times less risky than The Arbitrage. It trades about 0.45 of its potential returns per unit of risk. The Arbitrage Fund is currently generating about 0.2 per unit of risk. If you would invest 1,095 in Vivaldi Merger Arbitrage on August 19, 2025 and sell it today you would earn a total of 19.00 from holding Vivaldi Merger Arbitrage or generate 1.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vivaldi Merger Arbitrage vs. The Arbitrage Fund
Performance |
| Timeline |
| Vivaldi Merger Arbitrage |
| The Arbitrage |
Vivaldi Merger and The Arbitrage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vivaldi Merger and The Arbitrage
The main advantage of trading using opposite Vivaldi Merger and The Arbitrage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vivaldi Merger position performs unexpectedly, The Arbitrage 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 The Arbitrage will offset losses from the drop in The Arbitrage's long position.| Vivaldi Merger vs. First Trust Managed | Vivaldi Merger vs. Franklin Templeton Multi Asset | Vivaldi Merger vs. First Trust Multi Strategy | Vivaldi Merger vs. First Trust Short |
| The Arbitrage vs. Gamco International Growth | The Arbitrage vs. Tfa Alphagen Growth | The Arbitrage vs. Praxis Genesis Growth | The Arbitrage vs. Qs Growth Fund |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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