Correlation Between AIB Acquisition and Feutune Light
Can any of the company-specific risk be diversified away by investing in both AIB Acquisition and Feutune Light 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 AIB Acquisition and Feutune Light into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AIB Acquisition Corp and Feutune Light Acquisition, you can compare the effects of market volatilities on AIB Acquisition and Feutune Light 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 AIB Acquisition with a short position of Feutune Light. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIB Acquisition and Feutune Light.
Diversification Opportunities for AIB Acquisition and Feutune Light
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AIB and Feutune is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding AIB Acquisition Corp and Feutune Light Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Feutune Light Acquisition and AIB Acquisition 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 AIB Acquisition Corp are associated (or correlated) with Feutune Light. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Feutune Light Acquisition has no effect on the direction of AIB Acquisition i.e., AIB Acquisition and Feutune Light go up and down completely randomly.
Pair Corralation between AIB Acquisition and Feutune Light
Considering the 90-day investment horizon AIB Acquisition Corp is expected to generate 0.61 times more return on investment than Feutune Light. However, AIB Acquisition Corp is 1.65 times less risky than Feutune Light. It trades about 0.03 of its potential returns per unit of risk. Feutune Light Acquisition is currently generating about -0.08 per unit of risk. If you would invest 1,017 in AIB Acquisition Corp on August 30, 2024 and sell it today you would earn a total of 156.00 from holding AIB Acquisition Corp or generate 15.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.79% |
| Values | Daily Returns |
AIB Acquisition Corp vs. Feutune Light Acquisition
Performance |
| Timeline |
| AIB Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Feutune Light Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
AIB Acquisition and Feutune Light Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AIB Acquisition and Feutune Light
The main advantage of trading using opposite AIB Acquisition and Feutune Light positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIB Acquisition position performs unexpectedly, Feutune Light 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 Feutune Light will offset losses from the drop in Feutune Light's long position.| AIB Acquisition vs. AlphaTime Acquisition Corp | AIB Acquisition vs. Manaris Corp | AIB Acquisition vs. Alpha One | AIB Acquisition vs. Portage Fintech Acquisition |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |