Correlation Between FTAC Emerald and Voyager Acquisition
Can any of the company-specific risk be diversified away by investing in both FTAC Emerald and Voyager 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 FTAC Emerald and Voyager Acquisition 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 Voyager Acquisition Corp, you can compare the effects of market volatilities on FTAC Emerald and Voyager 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 FTAC Emerald with a short position of Voyager Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of FTAC Emerald and Voyager Acquisition.
Diversification Opportunities for FTAC Emerald and Voyager Acquisition
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between FTAC and Voyager is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding FTAC Emerald Acquisition and Voyager Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voyager Acquisition Corp 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 Voyager Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voyager Acquisition Corp has no effect on the direction of FTAC Emerald i.e., FTAC Emerald and Voyager Acquisition go up and down completely randomly.
Pair Corralation between FTAC Emerald and Voyager Acquisition
Assuming the 90 days horizon FTAC Emerald Acquisition is expected to generate 175.27 times more return on investment than Voyager Acquisition. However, FTAC Emerald is 175.27 times more volatile than Voyager Acquisition Corp. It trades about 0.13 of its potential returns per unit of risk. Voyager Acquisition Corp is currently generating about 0.07 per unit of risk. If you would invest 5.00 in FTAC Emerald Acquisition on September 12, 2024 and sell it today you would earn a total of 75.00 from holding FTAC Emerald Acquisition or generate 1500.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 14.57% |
| Values | Daily Returns |
FTAC Emerald Acquisition vs. Voyager Acquisition Corp
Performance |
| Timeline |
| FTAC Emerald Acquisition |
| Voyager Acquisition Corp |
FTAC Emerald and Voyager Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FTAC Emerald and Voyager Acquisition
The main advantage of trading using opposite FTAC Emerald and Voyager Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FTAC Emerald position performs unexpectedly, Voyager 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 Voyager Acquisition will offset losses from the drop in Voyager Acquisition's long position.| FTAC Emerald vs. Distoken Acquisition | FTAC Emerald vs. dMY Squared Technology | FTAC Emerald vs. YHN Acquisition I | FTAC Emerald vs. CO2 Energy Transition |
| Voyager Acquisition vs. Distoken Acquisition | Voyager Acquisition vs. dMY Squared Technology | Voyager Acquisition vs. YHN Acquisition I | Voyager Acquisition vs. CO2 Energy Transition |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |