Correlation Between CF Acquisition and Jupiter Acquisition
Can any of the company-specific risk be diversified away by investing in both CF Acquisition and Jupiter 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 CF Acquisition and Jupiter Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CF Acquisition IV and Jupiter Acquisition Corp, you can compare the effects of market volatilities on CF Acquisition and Jupiter 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 CF Acquisition with a short position of Jupiter Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of CF Acquisition and Jupiter Acquisition.
Diversification Opportunities for CF Acquisition and Jupiter Acquisition
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CFIV and Jupiter is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding CF Acquisition IV and Jupiter Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jupiter Acquisition Corp and CF 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 CF Acquisition IV are associated (or correlated) with Jupiter Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jupiter Acquisition Corp has no effect on the direction of CF Acquisition i.e., CF Acquisition and Jupiter Acquisition go up and down completely randomly.
Pair Corralation between CF Acquisition and Jupiter Acquisition
If you would invest 1,040 in Jupiter Acquisition Corp on September 3, 2024 and sell it today you would earn a total of 0.00 from holding Jupiter Acquisition Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CF Acquisition IV vs. Jupiter Acquisition Corp
Performance |
| Timeline |
| CF Acquisition IV |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Jupiter Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
CF Acquisition and Jupiter Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CF Acquisition and Jupiter Acquisition
The main advantage of trading using opposite CF Acquisition and Jupiter Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CF Acquisition position performs unexpectedly, Jupiter 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 Jupiter Acquisition will offset losses from the drop in Jupiter Acquisition's long position.| CF Acquisition vs. Finnovate Acquisition Corp | CF Acquisition vs. IX Acquisition Corp | CF Acquisition vs. LatAmGrowth SPAC |
| Jupiter Acquisition vs. Coliseum Acquisition Corp | Jupiter 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 CEOs Directory module to screen CEOs from public companies around the world.
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