Correlation Between Pantages Capital and Indigo Acquisition

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

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

Diversification Opportunities for Pantages Capital and Indigo Acquisition

0.6

Correlation Coefficient

Pantages Capital  Indigo Acquisition

Poor diversification

The 3 months correlation between Pantages and Indigo is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Pantages Capital Acquisition and Indigo Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indigo Acquisition Corp and Pantages Capital 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 Pantages Capital Acquisition are associated (or correlated) with Indigo Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indigo Acquisition Corp has no effect on the direction of Pantages Capital i.e., Pantages Capital and Indigo Acquisition go up and down completely randomly.

Pair Corralation between Pantages Capital and Indigo Acquisition

Given the investment horizon of 90 days Pantages Capital Acquisition is expected to generate 0.8 times more return on investment than Indigo Acquisition. However, Pantages Capital Acquisition is 1.25 times less risky than Indigo Acquisition. It trades about 0.1 of its potential returns per unit of risk. Indigo Acquisition Corp is currently generating about 0.07 per unit of risk. If you would invest  1,028  in Pantages Capital Acquisition on October 7, 2025 and sell it today you would earn a total of  8.00  from holding Pantages Capital Acquisition or generate 0.78% return on investment over 90 days.

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

Pantages Capital Acquisition  vs.  Indigo Acquisition Corp

Pantages Capital Acq

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Pantages Capital Acquisition are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, Pantages Capital is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Indigo Acquisition Corp

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Indigo Acquisition Corp are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, Indigo Acquisition is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Pantages Capital and Indigo Acquisition

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

The idea behind Pantages Capital Acquisition and Indigo Acquisition Corp 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.