Correlation Between Monster Beverage and A SPAC

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

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

Diversification Opportunities for Monster Beverage and A SPAC

-0.43

Correlation Coefficient

Monster Beverage  A SPAC

Very good diversification

The 3 months correlation between Monster and ASPC is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Monster Beverage Corp 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 Monster Beverage 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 Monster Beverage Corp 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 Monster Beverage i.e., Monster Beverage and A SPAC go up and down completely randomly.

Pair Corralation between Monster Beverage and A SPAC

Given the investment horizon of 90 days Monster Beverage Corp is expected to generate 10.61 times more return on investment than A SPAC. However, Monster Beverage is 10.61 times more volatile than A SPAC III. It trades about 0.03 of its potential returns per unit of risk. A SPAC III is currently generating about 0.1 per unit of risk. If you would invest  6,286  in Monster Beverage Corp on May 16, 2025 and sell it today you would earn a total of  129.00  from holding Monster Beverage Corp or generate 2.05% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Monster Beverage Corp  vs.  A SPAC III

Monster Beverage Corp

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Monster Beverage Corp are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Monster Beverage is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

A SPAC III

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in A SPAC III are ranked lower than 8 (%) 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 Monster Beverage and A SPAC

The main advantage of trading using opposite Monster Beverage and A SPAC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Monster Beverage 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 Monster Beverage Corp 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.