Correlation Between FTAC Emerald and AMREP
Can any of the company-specific risk be diversified away by investing in both FTAC Emerald and AMREP 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 FTAC Emerald and AMREP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FTAC Emerald Acquisition and AMREP, you can compare the effects of market volatilities on FTAC Emerald and AMREP 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 FTAC Emerald with a short position of AMREP. Check out your portfolio center. Please also check ongoing floating volatility patterns of FTAC Emerald and AMREP.
Diversification Opportunities for FTAC Emerald and AMREP
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between FTAC and AMREP is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding FTAC Emerald Acquisition and AMREP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMREP and FTAC Emerald 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 FTAC Emerald Acquisition are associated (or correlated) with AMREP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMREP has no effect on the direction of FTAC Emerald i.e., FTAC Emerald and AMREP go up and down completely randomly.
Pair Corralation between FTAC Emerald and AMREP
Considering the 90-day investment horizon FTAC Emerald Acquisition is expected to generate 0.2 times more return on investment than AMREP. However, FTAC Emerald Acquisition is 4.98 times less risky than AMREP. It trades about 0.18 of its potential returns per unit of risk. AMREP is currently generating about 0.03 per unit of risk. If you would invest 1,095 in FTAC Emerald Acquisition on September 13, 2024 and sell it today you would earn a total of 35.50 from holding FTAC Emerald Acquisition or generate 3.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
FTAC Emerald Acquisition vs. AMREP
Performance |
| Timeline |
| FTAC Emerald Acquisition |
| AMREP |
FTAC Emerald and AMREP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FTAC Emerald and AMREP
The main advantage of trading using opposite FTAC Emerald and AMREP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FTAC Emerald position performs unexpectedly, AMREP 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 AMREP will offset losses from the drop in AMREP's long position.| FTAC Emerald vs. AmTrust Financial Services | FTAC Emerald vs. Artisan Partners Asset | FTAC Emerald vs. Barings BDC | FTAC Emerald vs. Mill City Ventures |
| AMREP vs. Landsea Homes Corp | AMREP vs. Forestar Group | AMREP vs. Five Point Holdings | AMREP vs. American Realty Investors |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Stocks Directory Find actively traded stocks across global markets | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |