Correlation Between Bannix Acquisition and Feutune Light
Can any of the company-specific risk be diversified away by investing in both Bannix 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 Bannix 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 Bannix Acquisition Corp and Feutune Light Acquisition, you can compare the effects of market volatilities on Bannix 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 Bannix Acquisition with a short position of Feutune Light. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bannix Acquisition and Feutune Light.
Diversification Opportunities for Bannix Acquisition and Feutune Light
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bannix and Feutune is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Bannix 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 Bannix 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 Bannix 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 Bannix Acquisition i.e., Bannix Acquisition and Feutune Light go up and down completely randomly.
Pair Corralation between Bannix Acquisition and Feutune Light
Assuming the 90 days horizon Bannix Acquisition Corp is expected to generate 11.94 times more return on investment than Feutune Light. However, Bannix Acquisition is 11.94 times more volatile than Feutune Light Acquisition. It trades about 0.21 of its potential returns per unit of risk. Feutune Light Acquisition is currently generating about -0.25 per unit of risk. If you would invest 2.44 in Bannix Acquisition Corp on September 5, 2024 and sell it today you would lose (0.24) from holding Bannix Acquisition Corp or give up 9.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 16.13% |
| Values | Daily Returns |
Bannix Acquisition Corp vs. Feutune Light Acquisition
Performance |
| Timeline |
| Bannix Acquisition Corp |
| Feutune Light Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bannix Acquisition and Feutune Light Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bannix Acquisition and Feutune Light
The main advantage of trading using opposite Bannix Acquisition and Feutune Light positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bannix 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.| Bannix Acquisition vs. Visa Class A | Bannix Acquisition vs. Deutsche Bank AG | Bannix Acquisition vs. Dynex Capital |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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