Correlation Between Fold Holdings, and Distoken Acquisition

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

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

Diversification Opportunities for Fold Holdings, and Distoken Acquisition

0.26

Correlation Coefficient

Fold Holdings,  Distoken Acquisition

Modest diversification

The 3 months correlation between Fold and Distoken is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Fold Holdings, Warrant and Distoken Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Distoken Acquisition and Fold Holdings, 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 Fold Holdings, Warrant are associated (or correlated) with Distoken Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Distoken Acquisition has no effect on the direction of Fold Holdings, i.e., Fold Holdings, and Distoken Acquisition go up and down completely randomly.

Pair Corralation between Fold Holdings, and Distoken Acquisition

Assuming the 90 days horizon Fold Holdings, Warrant is expected to generate 7.96 times more return on investment than Distoken Acquisition. However, Fold Holdings, is 7.96 times more volatile than Distoken Acquisition. It trades about 0.0 of its potential returns per unit of risk. Distoken Acquisition is currently generating about -0.01 per unit of risk. If you would invest  87.00  in Fold Holdings, Warrant on December 29, 2024 and sell it today you would lose (18.00) from holding Fold Holdings, Warrant or give up 20.69% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	96.72%
Values	Daily Returns

Fold Holdings, Warrant  vs.  Distoken Acquisition

Fold Holdings, Warrant

Risk-Adjusted Performance

Very Weak

Over the last 90 days Fold Holdings, Warrant has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable fundamental indicators, Fold Holdings, is not utilizing all of its potentials. The newest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Distoken Acquisition

Risk-Adjusted Performance

Very Weak

Over the last 90 days Distoken Acquisition has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Distoken Acquisition is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Fold Holdings, and Distoken Acquisition

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

The idea behind Fold Holdings, Warrant and Distoken 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.