Correlation Between FG Merger and Finnovate Acquisition
Can any of the company-specific risk be diversified away by investing in both FG Merger and Finnovate 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 FG Merger and Finnovate Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FG Merger Corp and Finnovate Acquisition Corp, you can compare the effects of market volatilities on FG Merger and Finnovate 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 FG Merger with a short position of Finnovate Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of FG Merger and Finnovate Acquisition.
Diversification Opportunities for FG Merger and Finnovate Acquisition
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FGMCW and Finnovate is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FG Merger Corp and Finnovate Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Finnovate Acquisition and FG Merger 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 FG Merger Corp are associated (or correlated) with Finnovate Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Finnovate Acquisition has no effect on the direction of FG Merger i.e., FG Merger and Finnovate Acquisition go up and down completely randomly.
Pair Corralation between FG Merger and Finnovate Acquisition
If you would invest (100.00) in FG Merger Corp on December 5, 2024 and sell it today you would earn a total of 100.00 from holding FG Merger Corp or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
FG Merger Corp vs. Finnovate Acquisition Corp
Performance |
Timeline |
FG Merger Corp |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Finnovate Acquisition |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
FG Merger and Finnovate Acquisition Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with FG Merger and Finnovate Acquisition
The main advantage of trading using opposite FG Merger and Finnovate Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FG Merger position performs unexpectedly, Finnovate 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 Finnovate Acquisition will offset losses from the drop in Finnovate Acquisition's long position.FG Merger vs. Intuitive Surgical | FG Merger vs. Femasys | FG Merger vs. Ispire Technology Common | FG Merger vs. Turning Point Brands |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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