Correlation Between A SPAC and Rising Dragon

Can any of the company-specific risk be diversified away by investing in both A SPAC and Rising Dragon 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 A SPAC and Rising Dragon into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between A SPAC III and Rising Dragon Acquisition, you can compare the effects of market volatilities on A SPAC and Rising Dragon 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 A SPAC with a short position of Rising Dragon. Check out your portfolio center. Please also check ongoing floating volatility patterns of A SPAC and Rising Dragon.

Diversification Opportunities for A SPAC and Rising Dragon

-0.14

Correlation Coefficient

A SPAC  Rising Dragon

Good diversification

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

Pair Corralation between A SPAC and Rising Dragon

Given the investment horizon of 90 days A SPAC III is expected to generate 2.53 times more return on investment than Rising Dragon. However, A SPAC is 2.53 times more volatile than Rising Dragon Acquisition. It trades about 0.15 of its potential returns per unit of risk. Rising Dragon Acquisition is currently generating about 0.02 per unit of risk. If you would invest  1,034  in A SPAC III on October 2, 2025 and sell it today you would earn a total of  1,309  from holding A SPAC III or generate 126.6% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

A SPAC III  vs.  Rising Dragon Acquisition

A SPAC III

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in A SPAC III are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, A SPAC exhibited solid returns over the last few months and may actually be approaching a breakup point.

Rising Dragon Acquisition

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Rising Dragon Acquisition are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Rising Dragon may actually be approaching a critical reversion point that can send shares even higher in January 2026.

Pair Trading with A SPAC and Rising Dragon

The main advantage of trading using opposite A SPAC and Rising Dragon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if A SPAC position performs unexpectedly, Rising Dragon 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 Rising Dragon will offset losses from the drop in Rising Dragon's long position.

The idea behind A SPAC III and Rising Dragon Acquisition 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.