Correlation Between Fintech Ecosystem and NorthView Acquisition

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

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

Diversification Opportunities for Fintech Ecosystem and NorthView Acquisition

0.0

Correlation Coefficient

Fintech Ecosystem  NorthView Acquisition

Pay attention - limited upside

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

Pair Corralation between Fintech Ecosystem and NorthView Acquisition

If you would invest  5.21  in NorthView Acquisition on October 10, 2024 and sell it today you would earn a total of  3.28  from holding NorthView Acquisition or generate 62.96% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	2.5%
Values	Daily Returns

Fintech Ecosystem Development  vs.  NorthView Acquisition

Fintech Ecosystem

Risk-Adjusted Performance

0 of 100

Very Weak

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

NorthView Acquisition

Risk-Adjusted Performance

0 of 100

Good

Over the last 90 days NorthView Acquisition has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively weak fundamental indicators, NorthView Acquisition reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Fintech Ecosystem and NorthView Acquisition

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

The idea behind Fintech Ecosystem Development and NorthView 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.