Correlation Between FG Acquisition and SKRR Exploration
Can any of the company-specific risk be diversified away by investing in both FG Acquisition and SKRR Exploration 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 SKRR Exploration 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 SKRR Exploration, you can compare the effects of market volatilities on FG Acquisition and SKRR Exploration 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 SKRR Exploration. Check out your portfolio center. Please also check ongoing floating volatility patterns of FG Acquisition and SKRR Exploration.
Diversification Opportunities for FG Acquisition and SKRR Exploration
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FGAA-U and SKRR is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding FG Acquisition Corp and SKRR Exploration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SKRR Exploration 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 SKRR Exploration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SKRR Exploration has no effect on the direction of FG Acquisition i.e., FG Acquisition and SKRR Exploration go up and down completely randomly.
Pair Corralation between FG Acquisition and SKRR Exploration
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 Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FG Acquisition Corp vs. SKRR Exploration
Performance |
| Timeline |
| FG Acquisition Corp |
| SKRR Exploration |
FG Acquisition and SKRR Exploration Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FG Acquisition and SKRR Exploration
The main advantage of trading using opposite FG Acquisition and SKRR Exploration positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FG Acquisition position performs unexpectedly, SKRR Exploration 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 SKRR Exploration will offset losses from the drop in SKRR Exploration's long position.| FG Acquisition vs. Orca Energy Group | FG Acquisition vs. Rogers Communications | FG Acquisition vs. Aclara Resources | FG Acquisition vs. Buhler Industries |
| SKRR Exploration vs. First Majestic Silver | SKRR Exploration vs. Ivanhoe Energy | SKRR Exploration vs. Orezone Gold Corp | SKRR Exploration vs. Faraday Copper 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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