Correlation Between ClimateRock and FIAC Old

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

By analyzing existing cross correlation between ClimateRock Class A and FIAC Old, you can compare the effects of market volatilities on ClimateRock and FIAC Old 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 ClimateRock with a short position of FIAC Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of ClimateRock and FIAC Old.

Diversification Opportunities for ClimateRock and FIAC Old

0.0

Correlation Coefficient

ClimateRock  FIAC Old

Pay attention - limited upside

The 3 months correlation between ClimateRock and FIAC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ClimateRock Class A and FIAC Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FIAC Old and ClimateRock 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 ClimateRock Class A are associated (or correlated) with FIAC Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FIAC Old has no effect on the direction of ClimateRock i.e., ClimateRock and FIAC Old go up and down completely randomly.

Pair Corralation between ClimateRock and FIAC Old

If you would invest  1,175  in ClimateRock Class A on December 21, 2024 and sell it today you would earn a total of  26.00  from holding ClimateRock Class A or generate 2.21% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

ClimateRock Class A  vs.  FIAC Old

ClimateRock Class

Risk-Adjusted Performance

Modest

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

FIAC Old

Risk-Adjusted Performance

Very Weak

Over the last 90 days FIAC Old has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, FIAC Old is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with ClimateRock and FIAC Old

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

The idea behind ClimateRock Class A and FIAC Old 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.

Check out your portfolio center.

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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.