Correlation Between Arogo Capital and FTAC Emerald
Can any of the company-specific risk be diversified away by investing in both Arogo Capital and FTAC Emerald 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 Arogo Capital and FTAC Emerald into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Arogo Capital Acquisition and FTAC Emerald Acquisition, you can compare the effects of market volatilities on Arogo Capital and FTAC Emerald 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 Arogo Capital with a short position of FTAC Emerald. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arogo Capital and FTAC Emerald.
Diversification Opportunities for Arogo Capital and FTAC Emerald
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Arogo and FTAC is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Arogo Capital Acquisition and FTAC Emerald Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FTAC Emerald Acquisition and Arogo Capital 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 Arogo Capital Acquisition are associated (or correlated) with FTAC Emerald. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FTAC Emerald Acquisition has no effect on the direction of Arogo Capital i.e., Arogo Capital and FTAC Emerald go up and down completely randomly.
Pair Corralation between Arogo Capital and FTAC Emerald
Assuming the 90 days horizon Arogo Capital Acquisition is expected to under-perform the FTAC Emerald. But the pink sheet apears to be less risky and, when comparing its historical volatility, Arogo Capital Acquisition is 1.06 times less risky than FTAC Emerald. The pink sheet trades about -0.05 of its potential returns per unit of risk. The FTAC Emerald Acquisition is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,047 in FTAC Emerald Acquisition on August 29, 2024 and sell it today you would earn a total of 153.00 from holding FTAC Emerald Acquisition or generate 14.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 84.29% |
| Values | Daily Returns |
Arogo Capital Acquisition vs. FTAC Emerald Acquisition
Performance |
| Timeline |
| Arogo Capital Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| FTAC Emerald Acquisition |
Arogo Capital and FTAC Emerald Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arogo Capital and FTAC Emerald
The main advantage of trading using opposite Arogo Capital and FTAC Emerald positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arogo Capital position performs unexpectedly, FTAC Emerald 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 FTAC Emerald will offset losses from the drop in FTAC Emerald's long position.The idea behind Arogo Capital Acquisition and FTAC Emerald 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.| FTAC Emerald vs. Distoken Acquisition | FTAC Emerald vs. Voyager Acquisition Corp | FTAC Emerald vs. dMY Squared Technology | FTAC Emerald vs. YHN Acquisition I |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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