Correlation Between FTAC Emerald and Tianjin Capital
Can any of the company-specific risk be diversified away by investing in both FTAC Emerald and Tianjin Capital 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 Tianjin Capital 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 Tianjin Capital Environmental, you can compare the effects of market volatilities on FTAC Emerald and Tianjin Capital 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 Tianjin Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of FTAC Emerald and Tianjin Capital.
Diversification Opportunities for FTAC Emerald and Tianjin Capital
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between FTAC and Tianjin is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding FTAC Emerald Acquisition and Tianjin Capital Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin Capital Envi 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 Tianjin Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin Capital Envi has no effect on the direction of FTAC Emerald i.e., FTAC Emerald and Tianjin Capital go up and down completely randomly.
Pair Corralation between FTAC Emerald and Tianjin Capital
Assuming the 90 days horizon FTAC Emerald Acquisition is expected to generate 3.21 times more return on investment than Tianjin Capital. However, FTAC Emerald is 3.21 times more volatile than Tianjin Capital Environmental. It trades about 0.16 of its potential returns per unit of risk. Tianjin Capital Environmental is currently generating about 0.1 per unit of risk. If you would invest 7.99 in FTAC Emerald Acquisition on September 3, 2024 and sell it today you would earn a total of 62.01 from holding FTAC Emerald Acquisition or generate 776.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 84.8% |
| Values | Daily Returns |
FTAC Emerald Acquisition vs. Tianjin Capital Environmental
Performance |
| Timeline |
| FTAC Emerald Acquisition |
| Tianjin Capital Envi |
FTAC Emerald and Tianjin Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FTAC Emerald and Tianjin Capital
The main advantage of trading using opposite FTAC Emerald and Tianjin Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FTAC Emerald position performs unexpectedly, Tianjin Capital 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 Tianjin Capital will offset losses from the drop in Tianjin Capital's long position.| FTAC Emerald vs. Distoken Acquisition | FTAC Emerald vs. Voyager Acquisition Corp | FTAC Emerald vs. dMY Squared Technology | FTAC Emerald vs. YHN Acquisition I |
| Tianjin Capital vs. Weibo Corp | Tianjin Capital vs. Dave Busters Entertainment | Tianjin Capital vs. Hafnia Limited | Tianjin Capital vs. National CineMedia |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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