Correlation Between Cannae Holdings and RF Acquisition
Can any of the company-specific risk be diversified away by investing in both Cannae Holdings and RF 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 Cannae Holdings and RF Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cannae Holdings and RF Acquisition Corp, you can compare the effects of market volatilities on Cannae Holdings and RF 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 Cannae Holdings with a short position of RF Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cannae Holdings and RF Acquisition.
Diversification Opportunities for Cannae Holdings and RF Acquisition
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cannae and RFACR is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Cannae Holdings and RF Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RF Acquisition Corp and Cannae Holdings 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 Cannae Holdings are associated (or correlated) with RF Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RF Acquisition Corp has no effect on the direction of Cannae Holdings i.e., Cannae Holdings and RF Acquisition go up and down completely randomly.
Pair Corralation between Cannae Holdings and RF Acquisition
If you would invest 1,920 in Cannae Holdings on September 3, 2024 and sell it today you would earn a total of 250.00 from holding Cannae Holdings or generate 13.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Cannae Holdings vs. RF Acquisition Corp
Performance |
| Timeline |
| Cannae Holdings |
| RF Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Cannae Holdings and RF Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cannae Holdings and RF Acquisition
The main advantage of trading using opposite Cannae Holdings and RF Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cannae Holdings position performs unexpectedly, RF 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 RF Acquisition will offset losses from the drop in RF Acquisition's long position.| Cannae Holdings vs. Brightsphere Investment Group | Cannae Holdings vs. Adtalem Global Education | Cannae Holdings vs. Hamilton Lane | Cannae Holdings vs. ConnectOne Bancorp |
| RF Acquisition vs. Cannae Holdings | RF Acquisition vs. Chipotle Mexican Grill | RF Acquisition vs. Dine Brands Global | RF Acquisition vs. Shake Shack |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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