Correlation Between Frontier Investment and Oxbridge Acquisition
Can any of the company-specific risk be diversified away by investing in both Frontier Investment and Oxbridge 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 Frontier Investment and Oxbridge Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Frontier Investment Corp and Oxbridge Acquisition Equity, you can compare the effects of market volatilities on Frontier Investment and Oxbridge 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 Frontier Investment with a short position of Oxbridge Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Frontier Investment and Oxbridge Acquisition.
Diversification Opportunities for Frontier Investment and Oxbridge Acquisition
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Frontier and Oxbridge is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Frontier Investment Corp and Oxbridge Acquisition Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oxbridge Acquisition and Frontier Investment 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 Frontier Investment Corp are associated (or correlated) with Oxbridge Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oxbridge Acquisition has no effect on the direction of Frontier Investment i.e., Frontier Investment and Oxbridge Acquisition go up and down completely randomly.
Pair Corralation between Frontier Investment and Oxbridge Acquisition
If you would invest 5.34 in Oxbridge Acquisition Equity on September 5, 2024 and sell it today you would earn a total of 0.00 from holding Oxbridge Acquisition Equity or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Frontier Investment Corp vs. Oxbridge Acquisition Equity
Performance |
| Timeline |
| Frontier Investment Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Oxbridge Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Frontier Investment and Oxbridge Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Frontier Investment and Oxbridge Acquisition
The main advantage of trading using opposite Frontier Investment and Oxbridge Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Frontier Investment position performs unexpectedly, Oxbridge 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 Oxbridge Acquisition will offset losses from the drop in Oxbridge Acquisition's long position.| Frontier Investment vs. Mars Acquisition Corp | Frontier Investment vs. AlphaTime Acquisition Corp | Frontier Investment vs. BurTech Acquisition Corp | Frontier Investment vs. Manaris 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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