Correlation Between Waldencast Acquisition and CoreCard Corp

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

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

Diversification Opportunities for Waldencast Acquisition and CoreCard Corp

-0.76

Correlation Coefficient

Waldencast Acquisition  CoreCard Corp

Pay attention - limited upside

The 3 months correlation between Waldencast and CoreCard is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Waldencast Acquisition Corp and CoreCard Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CoreCard Corp and Waldencast 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 Waldencast Acquisition Corp are associated (or correlated) with CoreCard Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CoreCard Corp has no effect on the direction of Waldencast Acquisition i.e., Waldencast Acquisition and CoreCard Corp go up and down completely randomly.

Pair Corralation between Waldencast Acquisition and CoreCard Corp

Assuming the 90 days horizon Waldencast Acquisition Corp is expected to under-perform the CoreCard Corp. In addition to that, Waldencast Acquisition is 3.71 times more volatile than CoreCard Corp. It trades about -0.03 of its total potential returns per unit of risk. CoreCard Corp is currently generating about 0.16 per unit of volatility. If you would invest  1,897  in CoreCard Corp on May 4, 2025 and sell it today you would earn a total of  874.00  from holding CoreCard Corp or generate 46.07% return on investment over 90 days.

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

Waldencast Acquisition Corp  vs.  CoreCard Corp

Waldencast Acquisition

Risk-Adjusted Performance

Very Weak

Over the last 90 days Waldencast Acquisition Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's fundamental indicators remain fairly stable which may send shares a bit higher in September 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

CoreCard Corp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in CoreCard Corp are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain basic indicators, CoreCard Corp exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Waldencast Acquisition and CoreCard Corp

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

The idea behind Waldencast Acquisition Corp and CoreCard 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.