Correlation Between Waldencast Acquisition and TC Traders
Can any of the company-specific risk be diversified away by investing in both Waldencast Acquisition and TC Traders 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 Waldencast Acquisition and TC Traders into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Waldencast Acquisition Corp and TC Traders Club, you can compare the effects of market volatilities on Waldencast Acquisition and TC Traders 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 Waldencast Acquisition with a short position of TC Traders. Check out your portfolio center. Please also check ongoing floating volatility patterns of Waldencast Acquisition and TC Traders.
Diversification Opportunities for Waldencast Acquisition and TC Traders
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Waldencast and TRAD3 is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Waldencast Acquisition Corp and TC Traders Club in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TC Traders Club and Waldencast 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 Waldencast Acquisition Corp are associated (or correlated) with TC Traders. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TC Traders Club has no effect on the direction of Waldencast Acquisition i.e., Waldencast Acquisition and TC Traders go up and down completely randomly.
Pair Corralation between Waldencast Acquisition and TC Traders
Given the investment horizon of 90 days Waldencast Acquisition Corp is expected to under-perform the TC Traders. But the stock apears to be less risky and, when comparing its historical volatility, Waldencast Acquisition Corp is 1.28 times less risky than TC Traders. The stock trades about -0.04 of its potential returns per unit of risk. The TC Traders Club is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 730.00 in TC Traders Club on July 20, 2025 and sell it today you would lose (130.00) from holding TC Traders Club or give up 17.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.48% |
| Values | Daily Returns |
Waldencast Acquisition Corp vs. TC Traders Club
Performance |
| Timeline |
| Waldencast Acquisition |
| TC Traders Club |
Waldencast Acquisition and TC Traders Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Waldencast Acquisition and TC Traders
The main advantage of trading using opposite Waldencast Acquisition and TC Traders positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Waldencast Acquisition position performs unexpectedly, TC Traders 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 TC Traders will offset losses from the drop in TC Traders' long position.| Waldencast Acquisition vs. A2Z Smart Technologies | Waldencast Acquisition vs. ON24 Inc | Waldencast Acquisition vs. Eventbrite Class A | Waldencast Acquisition vs. Immersion |
| TC Traders vs. Unity Software | TC Traders vs. Waldencast Acquisition Corp | TC Traders vs. Neogrid Participaes SA | TC Traders vs. PTC Inc |
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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