Correlation Between FG Merger and Consilium Acquisition
Can any of the company-specific risk be diversified away by investing in both FG Merger and Consilium 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 FG Merger and Consilium Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FG Merger Corp and Consilium Acquisition I, you can compare the effects of market volatilities on FG Merger and Consilium 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 FG Merger with a short position of Consilium Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of FG Merger and Consilium Acquisition.
Diversification Opportunities for FG Merger and Consilium Acquisition
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between FGMCW and Consilium is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding FG Merger Corp and Consilium Acquisition I in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Consilium Acquisition and FG Merger 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 Merger Corp are associated (or correlated) with Consilium Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Consilium Acquisition has no effect on the direction of FG Merger i.e., FG Merger and Consilium Acquisition go up and down completely randomly.
Pair Corralation between FG Merger and Consilium Acquisition
If you would invest 1,127 in Consilium Acquisition I on August 29, 2024 and sell it today you would earn a total of 8.00 from holding Consilium Acquisition I or generate 0.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
FG Merger Corp vs. Consilium Acquisition I
Performance |
| Timeline |
| FG Merger Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Consilium Acquisition |
FG Merger and Consilium Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FG Merger and Consilium Acquisition
The main advantage of trading using opposite FG Merger and Consilium Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FG Merger position performs unexpectedly, Consilium 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 Consilium Acquisition will offset losses from the drop in Consilium Acquisition's long position.| FG Merger vs. Cardinal Health | FG Merger vs. SunLink Health Systems | FG Merger vs. Valneva SE ADR | FG Merger vs. Titan Machinery |
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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