Correlation Between Focus Impact and FTAC Emerald
Can any of the company-specific risk be diversified away by investing in both Focus Impact and FTAC Emerald 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 Focus Impact and FTAC Emerald into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Focus Impact Acquisition and FTAC Emerald Acquisition, you can compare the effects of market volatilities on Focus Impact and FTAC Emerald 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 Focus Impact with a short position of FTAC Emerald. Check out your portfolio center. Please also check ongoing floating volatility patterns of Focus Impact and FTAC Emerald.
Diversification Opportunities for Focus Impact and FTAC Emerald
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Focus and FTAC is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Focus Impact Acquisition and FTAC Emerald Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FTAC Emerald Acquisition and Focus Impact 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 Focus Impact Acquisition are associated (or correlated) with FTAC Emerald. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FTAC Emerald Acquisition has no effect on the direction of Focus Impact i.e., Focus Impact and FTAC Emerald go up and down completely randomly.
Pair Corralation between Focus Impact and FTAC Emerald
Given the investment horizon of 90 days Focus Impact Acquisition is expected to generate 1.98 times more return on investment than FTAC Emerald. However, Focus Impact is 1.98 times more volatile than FTAC Emerald Acquisition. It trades about 0.2 of its potential returns per unit of risk. FTAC Emerald Acquisition is currently generating about 0.35 per unit of risk. If you would invest 100.00 in Focus Impact Acquisition on September 3, 2024 and sell it today you would earn a total of 6.00 from holding Focus Impact Acquisition or generate 6.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 25.0% |
| Values | Daily Returns |
Focus Impact Acquisition vs. FTAC Emerald Acquisition
Performance |
| Timeline |
| Focus Impact Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| FTAC Emerald Acquisition |
Focus Impact and FTAC Emerald Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Focus Impact and FTAC Emerald
The main advantage of trading using opposite Focus Impact and FTAC Emerald positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Focus Impact position performs unexpectedly, FTAC Emerald 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 FTAC Emerald will offset losses from the drop in FTAC Emerald's long position.| Focus Impact vs. ClimateRock Class A | Focus Impact vs. AlphaVest Acquisition Corp | Focus Impact vs. Golden Star Acquisition | Focus Impact vs. Portage Fintech Acquisition |
| FTAC Emerald vs. Distoken Acquisition | FTAC Emerald vs. Voyager Acquisition Corp | FTAC Emerald vs. dMY Squared Technology | FTAC Emerald vs. YHN Acquisition I |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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