Correlation Between Wintergreen Acquisition and Alibaba Health
Can any of the company-specific risk be diversified away by investing in both Wintergreen Acquisition and Alibaba Health 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 Wintergreen Acquisition and Alibaba Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wintergreen Acquisition Corp and Alibaba Health Information, you can compare the effects of market volatilities on Wintergreen Acquisition and Alibaba Health 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 Wintergreen Acquisition with a short position of Alibaba Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wintergreen Acquisition and Alibaba Health.
Diversification Opportunities for Wintergreen Acquisition and Alibaba Health
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Wintergreen and Alibaba is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Wintergreen Acquisition Corp and Alibaba Health Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alibaba Health Infor and Wintergreen 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 Wintergreen Acquisition Corp are associated (or correlated) with Alibaba Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alibaba Health Infor has no effect on the direction of Wintergreen Acquisition i.e., Wintergreen Acquisition and Alibaba Health go up and down completely randomly.
Pair Corralation between Wintergreen Acquisition and Alibaba Health
Considering the 90-day investment horizon Wintergreen Acquisition Corp is expected to generate 0.03 times more return on investment than Alibaba Health. However, Wintergreen Acquisition Corp is 38.09 times less risky than Alibaba Health. It trades about 0.11 of its potential returns per unit of risk. Alibaba Health Information is currently generating about -0.07 per unit of risk. If you would invest 1,006 in Wintergreen Acquisition Corp on September 10, 2025 and sell it today you would earn a total of 6.00 from holding Wintergreen Acquisition Corp or generate 0.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wintergreen Acquisition Corp vs. Alibaba Health Information
Performance |
| Timeline |
| Wintergreen Acquisition |
| Alibaba Health Infor |
Wintergreen Acquisition and Alibaba Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wintergreen Acquisition and Alibaba Health
The main advantage of trading using opposite Wintergreen Acquisition and Alibaba Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wintergreen Acquisition position performs unexpectedly, Alibaba Health 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 Alibaba Health will offset losses from the drop in Alibaba Health's long position.The idea behind Wintergreen Acquisition Corp and Alibaba Health Information 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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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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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