Correlation Between Growth For and FG Merger
Can any of the company-specific risk be diversified away by investing in both Growth For and FG Merger 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 Growth For and FG Merger into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Growth For Good and FG Merger Corp, you can compare the effects of market volatilities on Growth For and FG Merger 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 Growth For with a short position of FG Merger. Check out your portfolio center. Please also check ongoing floating volatility patterns of Growth For and FG Merger.
Diversification Opportunities for Growth For and FG Merger
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Growth and FGMCW is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Growth For Good and FG Merger Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FG Merger Corp and Growth For 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 Growth For Good are associated (or correlated) with FG Merger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FG Merger Corp has no effect on the direction of Growth For i.e., Growth For and FG Merger go up and down completely randomly.
Pair Corralation between Growth For and FG Merger
If you would invest 10.00 in FG Merger Corp on August 29, 2024 and sell it today you would earn a total of 0.00 from holding FG Merger Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Growth For Good vs. FG Merger Corp
Performance |
| Timeline |
| Growth For Good |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| FG Merger Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Growth For and FG Merger Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Growth For and FG Merger
The main advantage of trading using opposite Growth For and FG Merger positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Growth For position performs unexpectedly, FG Merger 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 FG Merger will offset losses from the drop in FG Merger's long position.| Growth For vs. Finnovate Acquisition Corp | Growth For vs. Broad Capital Acquisition | Growth For vs. Welsbach Technology Metals | Growth For vs. Gores Holdings IX |
| FG Merger vs. Cardinal Health | FG Merger vs. SunLink Health Systems | FG Merger vs. Valneva SE ADR | FG Merger vs. Titan Machinery |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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