Correlation Between FG Acquisition and Anfield Resources
Can any of the company-specific risk be diversified away by investing in both FG Acquisition and Anfield Resources 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 FG Acquisition and Anfield Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FG Acquisition Corp and Anfield Resources, you can compare the effects of market volatilities on FG Acquisition and Anfield Resources 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 FG Acquisition with a short position of Anfield Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of FG Acquisition and Anfield Resources.
Diversification Opportunities for FG Acquisition and Anfield Resources
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between FGAA-U and Anfield is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding FG Acquisition Corp and Anfield Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anfield Resources and FG 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 FG Acquisition Corp are associated (or correlated) with Anfield Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anfield Resources has no effect on the direction of FG Acquisition i.e., FG Acquisition and Anfield Resources go up and down completely randomly.
Pair Corralation between FG Acquisition and Anfield Resources
If you would invest 1,178 in FG Acquisition Corp on August 30, 2024 and sell it today you would earn a total of 0.00 from holding FG Acquisition Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FG Acquisition Corp vs. Anfield Resources
Performance |
| Timeline |
| FG Acquisition Corp |
| Anfield Resources |
FG Acquisition and Anfield Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FG Acquisition and Anfield Resources
The main advantage of trading using opposite FG Acquisition and Anfield Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FG Acquisition position performs unexpectedly, Anfield Resources 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 Anfield Resources will offset losses from the drop in Anfield Resources' long position.| FG Acquisition vs. Orca Energy Group | FG Acquisition vs. Rogers Communications | FG Acquisition vs. Aclara Resources | FG Acquisition vs. Buhler Industries |
| Anfield Resources vs. enCore Energy Corp | Anfield Resources vs. Fission 30 Corp | Anfield Resources vs. Forsys Metals Corp | Anfield Resources vs. Eros Resources 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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