Correlation Between FG Acquisition and Lomiko Metals
Can any of the company-specific risk be diversified away by investing in both FG Acquisition and Lomiko Metals 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 Lomiko Metals 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 Lomiko Metals, you can compare the effects of market volatilities on FG Acquisition and Lomiko Metals 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 Lomiko Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of FG Acquisition and Lomiko Metals.
Diversification Opportunities for FG Acquisition and Lomiko Metals
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FGAA-U and Lomiko is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding FG Acquisition Corp and Lomiko Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lomiko Metals 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 Lomiko Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lomiko Metals has no effect on the direction of FG Acquisition i.e., FG Acquisition and Lomiko Metals go up and down completely randomly.
Pair Corralation between FG Acquisition and Lomiko Metals
Assuming the 90 days trading horizon FG Acquisition Corp is expected to generate 0.1 times more return on investment than Lomiko Metals. However, FG Acquisition Corp is 10.24 times less risky than Lomiko Metals. It trades about 0.18 of its potential returns per unit of risk. Lomiko Metals is currently generating about -0.12 per unit of risk. If you would invest 1,037 in FG Acquisition Corp on September 1, 2024 and sell it today you would earn a total of 141.00 from holding FG Acquisition Corp or generate 13.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.21% |
| Values | Daily Returns |
FG Acquisition Corp vs. Lomiko Metals
Performance |
| Timeline |
| FG Acquisition Corp |
| Lomiko Metals |
FG Acquisition and Lomiko Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FG Acquisition and Lomiko Metals
The main advantage of trading using opposite FG Acquisition and Lomiko Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FG Acquisition position performs unexpectedly, Lomiko Metals 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 Lomiko Metals will offset losses from the drop in Lomiko Metals' long position.| FG Acquisition vs. InPlay Oil Corp | FG Acquisition vs. Quisitive Technology Solutions | FG Acquisition vs. Ramp Metals | FG Acquisition vs. Network Media Group |
| Lomiko Metals vs. Sangoma Technologies Corp | Lomiko Metals vs. AGF Management Limited | Lomiko Metals vs. Metalero Mining Corp | Lomiko Metals vs. Altair Resources |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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