Correlation Between Software Acquisition and Curiositystream

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

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

Diversification Opportunities for Software Acquisition and Curiositystream

-0.62

Correlation Coefficient

Software Acquisition  Curiositystream

Excellent diversification

The 3 months correlation between Software and Curiositystream is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Software Acquisition Group and Curiositystream in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Curiositystream and Software 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 Software Acquisition Group are associated (or correlated) with Curiositystream. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Curiositystream has no effect on the direction of Software Acquisition i.e., Software Acquisition and Curiositystream go up and down completely randomly.

Pair Corralation between Software Acquisition and Curiositystream

Given the investment horizon of 90 days Software Acquisition Group is expected to under-perform the Curiositystream. In addition to that, Software Acquisition is 1.68 times more volatile than Curiositystream. It trades about -0.17 of its total potential returns per unit of risk. Curiositystream is currently generating about -0.13 per unit of volatility. If you would invest  455.00  in Curiositystream on September 19, 2025 and sell it today you would lose (50.00) from holding Curiositystream or give up 10.99% of portfolio value over 90 days.

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

Software Acquisition Group  vs.  Curiositystream

Software Acquisition

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Software Acquisition Group are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Software Acquisition reported solid returns over the last few months and may actually be approaching a breakup point.

Curiositystream

Risk-Adjusted Performance

Weakest

Over the last 90 days Curiositystream has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in January 2026. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Software Acquisition and Curiositystream

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

The idea behind Software Acquisition Group and Curiositystream 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.