Correlation Between DUET Acquisition and FTAC Emerald
Can any of the company-specific risk be diversified away by investing in both DUET Acquisition 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 DUET Acquisition and FTAC Emerald into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DUET Acquisition Corp and FTAC Emerald Acquisition, you can compare the effects of market volatilities on DUET Acquisition 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 DUET Acquisition with a short position of FTAC Emerald. Check out your portfolio center. Please also check ongoing floating volatility patterns of DUET Acquisition and FTAC Emerald.
Diversification Opportunities for DUET Acquisition and FTAC Emerald
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between DUET and FTAC is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding DUET Acquisition Corp 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 DUET 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 DUET Acquisition Corp 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 DUET Acquisition i.e., DUET Acquisition and FTAC Emerald go up and down completely randomly.
Pair Corralation between DUET Acquisition and FTAC Emerald
Given the investment horizon of 90 days DUET Acquisition is expected to generate 14.27 times less return on investment than FTAC Emerald. But when comparing it to its historical volatility, DUET Acquisition Corp is 7.55 times less risky than FTAC Emerald. It trades about 0.16 of its potential returns per unit of risk. FTAC Emerald Acquisition is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 1,100 in FTAC Emerald Acquisition on September 1, 2024 and sell it today you would earn a total of 100.00 from holding FTAC Emerald Acquisition or generate 9.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DUET Acquisition Corp vs. FTAC Emerald Acquisition
Performance |
| Timeline |
| DUET Acquisition Corp |
| FTAC Emerald Acquisition |
DUET Acquisition and FTAC Emerald Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DUET Acquisition and FTAC Emerald
The main advantage of trading using opposite DUET Acquisition and FTAC Emerald positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DUET Acquisition 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.| DUET Acquisition vs. Chain Bridge I | DUET Acquisition vs. Mars Acquisition Corp | DUET Acquisition vs. AlphaTime Acquisition Corp | DUET Acquisition vs. Manaris Corp |
| FTAC Emerald vs. Voyager Acquisition Corp | FTAC Emerald vs. CO2 Energy Transition | FTAC Emerald vs. Vine Hill Capital | FTAC Emerald vs. DUET Acquisition Corp |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |