Correlation Between Evergreen Corp and Finnovate Acquisition
Can any of the company-specific risk be diversified away by investing in both Evergreen Corp and Finnovate 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 Evergreen Corp and Finnovate Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Evergreen Corp and Finnovate Acquisition Corp, you can compare the effects of market volatilities on Evergreen Corp and Finnovate 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 Evergreen Corp with a short position of Finnovate Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evergreen Corp and Finnovate Acquisition.
Diversification Opportunities for Evergreen Corp and Finnovate Acquisition
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Evergreen and Finnovate is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Evergreen Corp and Finnovate Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Finnovate Acquisition and Evergreen Corp 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 Evergreen Corp are associated (or correlated) with Finnovate Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Finnovate Acquisition has no effect on the direction of Evergreen Corp i.e., Evergreen Corp and Finnovate Acquisition go up and down completely randomly.
Pair Corralation between Evergreen Corp and Finnovate Acquisition
Given the investment horizon of 90 days Evergreen Corp is expected to generate 0.33 times more return on investment than Finnovate Acquisition. However, Evergreen Corp is 3.01 times less risky than Finnovate Acquisition. It trades about -0.08 of its potential returns per unit of risk. Finnovate Acquisition Corp is currently generating about -0.07 per unit of risk. If you would invest 1,178 in Evergreen Corp on August 26, 2024 and sell it today you would lose (2.00) from holding Evergreen Corp or give up 0.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Evergreen Corp vs. Finnovate Acquisition Corp
Performance |
| Timeline |
| Evergreen Corp |
| Finnovate Acquisition |
Evergreen Corp and Finnovate Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evergreen Corp and Finnovate Acquisition
The main advantage of trading using opposite Evergreen Corp and Finnovate Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evergreen Corp position performs unexpectedly, Finnovate 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 Finnovate Acquisition will offset losses from the drop in Finnovate Acquisition's long position.| Evergreen Corp vs. PowerUp Acquisition Corp | Evergreen Corp vs. Aurora Innovation | Evergreen Corp vs. HUMANA INC | Evergreen Corp vs. Aquagold International |
| Finnovate Acquisition vs. Broad Capital Acquisition | Finnovate Acquisition vs. Welsbach Technology Metals |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |