Correlation Between ProCap Acquisition and Oxley Bridge

Can any of the company-specific risk be diversified away by investing in both ProCap Acquisition and Oxley Bridge 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 ProCap Acquisition and Oxley Bridge into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ProCap Acquisition Corp and Oxley Bridge Acquisition, you can compare the effects of market volatilities on ProCap Acquisition and Oxley Bridge 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 ProCap Acquisition with a short position of Oxley Bridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProCap Acquisition and Oxley Bridge.

Diversification Opportunities for ProCap Acquisition and Oxley Bridge

0.18

Correlation Coefficient

ProCap Acquisition  Oxley Bridge

Average diversification

The 3 months correlation between ProCap and Oxley is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding ProCap Acquisition Corp and Oxley Bridge Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oxley Bridge Acquisition and ProCap 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 ProCap Acquisition Corp are associated (or correlated) with Oxley Bridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oxley Bridge Acquisition has no effect on the direction of ProCap Acquisition i.e., ProCap Acquisition and Oxley Bridge go up and down completely randomly.

Pair Corralation between ProCap Acquisition and Oxley Bridge

Given the investment horizon of 90 days ProCap Acquisition Corp is expected to under-perform the Oxley Bridge. In addition to that, ProCap Acquisition is 4.09 times more volatile than Oxley Bridge Acquisition. It trades about -0.03 of its total potential returns per unit of risk. Oxley Bridge Acquisition is currently generating about 0.17 per unit of volatility. If you would invest  994.00  in Oxley Bridge Acquisition on August 25, 2025 and sell it today you would earn a total of  13.00  from holding Oxley Bridge Acquisition or generate 1.31% return on investment over 90 days.

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

ProCap Acquisition Corp  vs.  Oxley Bridge Acquisition

ProCap Acquisition Corp

Risk-Adjusted Performance

Weakest

Over the last 90 days ProCap Acquisition Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, ProCap Acquisition is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Oxley Bridge Acquisition

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Oxley Bridge Acquisition are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong fundamental drivers, Oxley Bridge is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with ProCap Acquisition and Oxley Bridge

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

The idea behind ProCap Acquisition Corp and Oxley Bridge 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..