Correlation Between FG Merger and Global Blockchain
Can any of the company-specific risk be diversified away by investing in both FG Merger and Global Blockchain 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 Global Blockchain 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 Global Blockchain Acquisition, you can compare the effects of market volatilities on FG Merger and Global Blockchain 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 Global Blockchain. Check out your portfolio center. Please also check ongoing floating volatility patterns of FG Merger and Global Blockchain.
Diversification Opportunities for FG Merger and Global Blockchain
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between FGMCW and Global is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding FG Merger Corp and Global Blockchain Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Blockchain 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 Global Blockchain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Blockchain has no effect on the direction of FG Merger i.e., FG Merger and Global Blockchain go up and down completely randomly.
Pair Corralation between FG Merger and Global Blockchain
If you would invest 1,096 in Global Blockchain Acquisition on August 29, 2024 and sell it today you would earn a total of 14.00 from holding Global Blockchain Acquisition or generate 1.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
FG Merger Corp vs. Global Blockchain Acquisition
Performance |
| Timeline |
| FG Merger Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Global Blockchain |
FG Merger and Global Blockchain Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FG Merger and Global Blockchain
The main advantage of trading using opposite FG Merger and Global Blockchain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FG Merger position performs unexpectedly, Global Blockchain 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 Global Blockchain will offset losses from the drop in Global Blockchain'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 |
| Global Blockchain vs. Patria Latin American | Global Blockchain vs. ABIVAX Socit Anonyme | Global Blockchain vs. Pinnacle Sherman Multi Strategy | Global Blockchain vs. Morningstar Unconstrained Allocation |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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