Correlation Between FG Merger and Innovative International
Can any of the company-specific risk be diversified away by investing in both FG Merger and Innovative International 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 Innovative International 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 Innovative International Acquisition, you can compare the effects of market volatilities on FG Merger and Innovative International 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 Innovative International. Check out your portfolio center. Please also check ongoing floating volatility patterns of FG Merger and Innovative International.
Diversification Opportunities for FG Merger and Innovative International
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between FGMCW and Innovative is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding FG Merger Corp and Innovative International Acqui in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innovative International 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 Innovative International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Innovative International has no effect on the direction of FG Merger i.e., FG Merger and Innovative International go up and down completely randomly.
Pair Corralation between FG Merger and Innovative International
If you would invest 7.50 in Innovative International Acquisition on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Innovative International Acquisition 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 Merger Corp vs. Innovative International Acqui
Performance |
| Timeline |
| FG Merger Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Innovative International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
FG Merger and Innovative International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FG Merger and Innovative International
The main advantage of trading using opposite FG Merger and Innovative International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FG Merger position performs unexpectedly, Innovative International 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 Innovative International will offset losses from the drop in Innovative International'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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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