Correlation Between Broadstone Net and A SPAC

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

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

Diversification Opportunities for Broadstone Net and A SPAC

0.83

Correlation Coefficient

Broadstone Net  A SPAC

Very poor diversification

The 3 months correlation between Broadstone and ASPC is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Broadstone Net Lease and A SPAC III in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on A SPAC III and Broadstone Net 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 Broadstone Net Lease are associated (or correlated) with A SPAC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of A SPAC III has no effect on the direction of Broadstone Net i.e., Broadstone Net and A SPAC go up and down completely randomly.

Pair Corralation between Broadstone Net and A SPAC

Considering the 90-day investment horizon Broadstone Net Lease is expected to generate 11.69 times more return on investment than A SPAC. However, Broadstone Net is 11.69 times more volatile than A SPAC III. It trades about 0.17 of its potential returns per unit of risk. A SPAC III is currently generating about 0.15 per unit of risk. If you would invest  1,588  in Broadstone Net Lease on July 14, 2025 and sell it today you would earn a total of  217.00  from holding Broadstone Net Lease or generate 13.66% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Broadstone Net Lease  vs.  A SPAC III

Broadstone Net Lease

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Broadstone Net Lease are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite quite uncertain basic indicators, Broadstone Net disclosed solid returns over the last few months and may actually be approaching a breakup point.

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 sound basic indicators, A SPAC is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Broadstone Net and A SPAC

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

The idea behind Broadstone Net Lease and A SPAC III 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.