Correlation Between Forum Merger and Growth For
Can any of the company-specific risk be diversified away by investing in both Forum Merger and Growth For 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 Forum Merger and Growth For into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Forum Merger IV and Growth For Good, you can compare the effects of market volatilities on Forum Merger and Growth For 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 Forum Merger with a short position of Growth For. Check out your portfolio center. Please also check ongoing floating volatility patterns of Forum Merger and Growth For.
Diversification Opportunities for Forum Merger and Growth For
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Forum and Growth is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Forum Merger IV and Growth For Good in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Growth For Good and Forum 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 Forum Merger IV are associated (or correlated) with Growth For. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Growth For Good has no effect on the direction of Forum Merger i.e., Forum Merger and Growth For go up and down completely randomly.
Pair Corralation between Forum Merger and Growth For
Given the investment horizon of 90 days Forum Merger IV is expected to generate 1.14 times more return on investment than Growth For. However, Forum Merger is 1.14 times more volatile than Growth For Good. It trades about 0.15 of its potential returns per unit of risk. Growth For Good is currently generating about 0.17 per unit of risk. If you would invest 996.00 in Forum Merger IV on September 10, 2024 and sell it today you would earn a total of 40.00 from holding Forum Merger IV or generate 4.02% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 96.6% |
Values | Daily Returns |
Forum Merger IV vs. Growth For Good
Performance |
Timeline |
Forum Merger IV |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Growth For Good |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Forum Merger and Growth For Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Forum Merger and Growth For
The main advantage of trading using opposite Forum Merger and Growth For positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Forum Merger position performs unexpectedly, Growth For 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 Growth For will offset losses from the drop in Growth For's long position.Forum Merger vs. Welsbach Technology Metals | Forum Merger vs. Broad Capital Acquisition | Forum Merger vs. Finnovate Acquisition Corp |
Growth For vs. Finnovate Acquisition Corp | Growth For vs. Broad Capital Acquisition | Growth For vs. Welsbach Technology Metals | Growth For vs. Gores Holdings IX |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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