Correlation Between Fusion Acquisition and DHAC Old
Can any of the company-specific risk be diversified away by investing in both Fusion Acquisition and DHAC Old 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 Fusion Acquisition and DHAC Old into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fusion Acquisition Corp and DHAC Old, you can compare the effects of market volatilities on Fusion Acquisition and DHAC Old 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 Fusion Acquisition with a short position of DHAC Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fusion Acquisition and DHAC Old.
Diversification Opportunities for Fusion Acquisition and DHAC Old
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fusion and DHAC is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Fusion Acquisition Corp and DHAC Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DHAC Old and Fusion 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 Fusion Acquisition Corp are associated (or correlated) with DHAC Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DHAC Old has no effect on the direction of Fusion Acquisition i.e., Fusion Acquisition and DHAC Old go up and down completely randomly.
Pair Corralation between Fusion Acquisition and DHAC Old
If you would invest 1,211 in DHAC Old on November 4, 2024 and sell it today you would earn a total of 0.00 from holding DHAC Old or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fusion Acquisition Corp vs. DHAC Old
Performance |
| Timeline |
| Fusion Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| DHAC Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Fusion Acquisition and DHAC Old Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fusion Acquisition and DHAC Old
The main advantage of trading using opposite Fusion Acquisition and DHAC Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fusion Acquisition position performs unexpectedly, DHAC Old 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 DHAC Old will offset losses from the drop in DHAC Old's long position.The idea behind Fusion Acquisition Corp and DHAC Old pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |