Correlation Between Finnovate Acquisition and Goal Acquisitions
Can any of the company-specific risk be diversified away by investing in both Finnovate Acquisition and Goal Acquisitions 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 Finnovate Acquisition and Goal Acquisitions into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Finnovate Acquisition Corp and Goal Acquisitions Corp, you can compare the effects of market volatilities on Finnovate Acquisition and Goal Acquisitions 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 Finnovate Acquisition with a short position of Goal Acquisitions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Finnovate Acquisition and Goal Acquisitions.
Diversification Opportunities for Finnovate Acquisition and Goal Acquisitions
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Finnovate and Goal is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Finnovate Acquisition Corp and Goal Acquisitions Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goal Acquisitions Corp and Finnovate Acquisition 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 Finnovate Acquisition Corp are associated (or correlated) with Goal Acquisitions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goal Acquisitions Corp has no effect on the direction of Finnovate Acquisition i.e., Finnovate Acquisition and Goal Acquisitions go up and down completely randomly.
Pair Corralation between Finnovate Acquisition and Goal Acquisitions
If you would invest 1,045 in Goal Acquisitions Corp on August 26, 2024 and sell it today you would earn a total of 0.00 from holding Goal Acquisitions Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Finnovate Acquisition Corp vs. Goal Acquisitions Corp
Performance |
| Timeline |
| Finnovate Acquisition |
| Goal Acquisitions Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Finnovate Acquisition and Goal Acquisitions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Finnovate Acquisition and Goal Acquisitions
The main advantage of trading using opposite Finnovate Acquisition and Goal Acquisitions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Finnovate Acquisition position performs unexpectedly, Goal Acquisitions 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 Goal Acquisitions will offset losses from the drop in Goal Acquisitions' long position.| Finnovate Acquisition vs. Broad Capital Acquisition | Finnovate Acquisition vs. Welsbach Technology Metals |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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