Correlation Between CF Acquisition and Goal Acquisitions
Can any of the company-specific risk be diversified away by investing in both CF Acquisition and Goal Acquisitions 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 Goal Acquisitions into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CF Acquisition Corp and Goal Acquisitions Corp, you can compare the effects of market volatilities on CF Acquisition and Goal Acquisitions 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 Goal Acquisitions. Check out your portfolio center. Please also check ongoing floating volatility patterns of CF Acquisition and Goal Acquisitions.
Diversification Opportunities for CF Acquisition and Goal Acquisitions
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between CFIVW and Goal is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding CF Acquisition Corp and Goal Acquisitions Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goal Acquisitions 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 Corp are associated (or correlated) with Goal Acquisitions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goal Acquisitions Corp has no effect on the direction of CF Acquisition i.e., CF Acquisition and Goal Acquisitions go up and down completely randomly.
Pair Corralation between CF Acquisition and Goal Acquisitions
If you would invest 3.04 in Goal Acquisitions Corp on August 27, 2024 and sell it today you would earn a total of 0.00 from holding Goal Acquisitions Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CF Acquisition Corp vs. Goal Acquisitions Corp
Performance |
| Timeline |
| CF Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Goal Acquisitions Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
CF Acquisition and Goal Acquisitions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CF Acquisition and Goal Acquisitions
The main advantage of trading using opposite CF Acquisition and Goal Acquisitions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CF Acquisition position performs unexpectedly, Goal Acquisitions 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 Goal Acquisitions will offset losses from the drop in Goal Acquisitions' long position.The idea behind CF Acquisition Corp and Goal Acquisitions Corp 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.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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |