Correlation Between Futuretech and Breeze Holdings
Can any of the company-specific risk be diversified away by investing in both Futuretech and Breeze Holdings 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 Futuretech and Breeze Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Futuretech II Acquisition and Breeze Holdings Acquisition, you can compare the effects of market volatilities on Futuretech and Breeze Holdings 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 Futuretech with a short position of Breeze Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Futuretech and Breeze Holdings.
Diversification Opportunities for Futuretech and Breeze Holdings
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Futuretech and Breeze is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Futuretech II Acquisition and Breeze Holdings Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Breeze Holdings Acqu and Futuretech 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 Futuretech II Acquisition are associated (or correlated) with Breeze Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Breeze Holdings Acqu has no effect on the direction of Futuretech i.e., Futuretech and Breeze Holdings go up and down completely randomly.
Pair Corralation between Futuretech and Breeze Holdings
If you would invest 1,101 in Futuretech II Acquisition on August 29, 2024 and sell it today you would earn a total of 4.00 from holding Futuretech II Acquisition or generate 0.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 0.79% |
| Values | Daily Returns |
Futuretech II Acquisition vs. Breeze Holdings Acquisition
Performance |
| Timeline |
| Futuretech II Acquisition |
| Breeze Holdings Acqu |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Futuretech and Breeze Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Futuretech and Breeze Holdings
The main advantage of trading using opposite Futuretech and Breeze Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Futuretech position performs unexpectedly, Breeze Holdings 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 Breeze Holdings will offset losses from the drop in Breeze Holdings' long position.| Futuretech vs. Patria Latin American | Futuretech vs. ABIVAX Socit Anonyme | Futuretech vs. Pinnacle Sherman Multi Strategy | Futuretech vs. Morningstar Unconstrained Allocation |
| Breeze Holdings vs. Qomolangma Acquisition Corp | Breeze Holdings vs. Futuretech II Acquisition | Breeze Holdings vs. Patria Latin American |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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